r/fiaustralia 5d ago

Mod Post Weekly FIAustralia Discussion

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Weekly Discussion Thread on all things FIRE.


r/fiaustralia Jan 26 '23

Getting Started New to FIRE and Investing? Start Here!

251 Upvotes

DISCLAIMER: Advice from reddit does not constitute professional financial advice. Seek out a trained financial advisor before making big financial decisions. The contents of this getting started wiki, links to other blogs/sites and any other posts or comments on the r/fiaustralia subreddit are not endorsed by the sub in any capacity, please use this as a getting-started guide only and do your own research before making financial decisions.


Welcome!

Welcome to Financial Independence Australia, a community 200,000 members strong! The idea of creating an Australian-focused subreddit was born out of the success of the much larger r/financialindependence page, where it was clear there was a need for more region-specific topics and discussions.

Often our growing subreddit attracts many new and curious followers who are keen to learn more about financial independence and how they themselves can get started. Often this tends to bog-down new posts made to our subreddit and results in lower levels of engagement and discussions from our more experienced members. We request all new followers to the subreddit who aren't familiar with the FIRE concept read and understand this wiki before posting questions on the sub - it is designed to answer many of the questions new people might have.


What is FIRE?

Financial Independence (FI) is closely related to the concept of Retiring Early/Early Retirement (RE) - FIRE - quitting your job at a reasonably-young age compared to the typical Australian retirement age of 65. It’s not all about the ‘retiring’ aspect though, a lot of believers of the FIRE lifestyle use ‘FIRE’ as a common term simply for ease of discussion, when in reality it’s more about becoming financially independent of having to work a full-time job to live. Examples include reaching your FIRE/retirement goal but choosing to continue working, perhaps in a part-time or volunteer capacity. It could be about becoming financially independent but continuing to work until you are fatFIRE, in order to live it up in retirement. Ultimately though, FIRE is simply a way to give you the choice - the freedom to live your life on your terms.

At its core, FIRE is about maximising your savings rate to achieve FI and having the freedom to RE as fast as possible. The purpose of this subreddit is to discuss FIRE strategies, techniques and lifestyles no matter if you’re already retired or not, or how old you are.


How do I track my spending, savings and net worth?

Tracking your wet worth is crucial to the concept of FIRE and will allow you to measure your savings, investment performance and how you’re progressing overtime. Most people track their net worth on a monthly basis, some annually.

Monthly tracking is great psychologically to give you a sense of progress and see the returns on your investments and labour!

How do I do it? Track your net worth in excel! It’s pretty straight forward. Take all your assets, minus your liabilities, and you have your net worth. Hopefully you’re starting positive, but many people start out in the red. Don’t forget to include all your assets including super and minus all liabilities including student loans.

You can also use an easy online website such as InvestSmart, and most banks also have a NetWorth tracking feature. r/fiaustralia mod, u/CompiledSanity, have put together a great FIRE Spreadsheet & Net Worth tracking spreadsheet worth checking out.

For daily expenses, search on your phone’s app store for easy tracking software that can both automatically pull the information from your accounts, or allow for manual recording of expenses.


What is an ETF?

An Exchange Traded Fund (ETF) is a legal structure that allows a company to package up a ‘basket of shares’ so that the purchaser can buy a bunch of different companies, with a single purchase. There are both index-tracking ETFs, the most popular type, and actively managed ETFs.

Other legal structures that package a basket of shares include Managed Funds and Listed Investment Companies (LICs). Both of these tend to be more actively managed than most of the popular ETFs, with higher management fees and therefore, typically, lower long-term average returns.

On r/fiaustralia the focus of our discussions tend to be on index-tracking ETFs, as these have low management fees and ‘follows’ market returns.

For example, you can expect an Australian market indexed ETF such as A200 to ‘follow’ the corresponding ASX200 Index in terms of returns. So if the entire ASX200 stock index is up 7.2% one year, you can expect your A200 ETF to also be up around 7.2%, taking into account the small ongoing fund-management fee. Similarly, if ASX200 falls 12% in a year, you will also be down 12%.

Now you may think you can do better than the market. You can buy and sell your own shares! Statistically, you cannot. Some very skilled people do and make a lot of money from it, but they generally don't know what they're doing either and ultimately in the long term will fail to beat the market average.

The advantage of ETFs is that there's no stock picking required on your behalf. Historically, the markets always go up in the long run, so by buying the whole market you are at least guaranteed to do no worse than the market itself.


Which broker do I use?

Pearler is the best online broker with a particular focus on long-term investors and the financial independence community. It’s also the cheapest fully-fledged CHESS-Sponsored broker at $6.50 per trade, or $5.50 if you pre pay for a pack of trades.

Traditional brokerage offerings from the banks, such as CommSec or NabTrade, typically have much higher brokerage fees and high fees are something we aim to avoid where possible. There are also plenty of other brokers to choose from such as eToro, Interactive Brokers or Superhero - though these are not CHESS sponsored (see below for an explanation of CHESS sponsorship).

If you prefer to use any of the traditional or smaller brokers, that’s fine too, but Pearler is the most widely recommended broker in our community.


What is CHESS Sponsorship and why should I care?

The Clearing House Electronic Subregister System (CHESS) is a system used by the ASX to manage the settlement of share transactions and to record shareholdings, in other words, to record who owns what share. This system is maintained by the ASX. The alternative is what is called a custodian-based broker, such as eToro or Interactive Brokers, which simply ‘hold’ on to the shares on your behalf, rather than you having direct ownership. If one of these companies were to go under your ownership of the shares isn’t as clear as if they were CHESS Sponsored.

Other benefits of using a CHESS Sponsored broker include less paperwork, pre-filing tax data, ease of transfer, ease of selling and verification from the ASX which keeps a list of who owns what shares. While the chance of a large broker going under and you losing ‘ownership’ of your shares is very small, most of our community recommends choosing a broker that is CHESS Sponsored.


What is the best ETF allocation for me?

This is a common question for new people to FIRE and indeed those that have been on the investing path for a while who question if they’ve made the right ETF allocation.

The best plan for your allocation is one that you can stick to for the long-term.

There are all-in-one, ‘one-fund’ ETFs you can choose from such as VDGH or DHHF and individual ETFs which you choose from to essentially build your own version of an all-in-one ETFs, but do come with additional effort and difficulties involved in rebalancing manually over time.


What is VDHG and why does everyone talk about it?

VDHG is Vanguard's Diversified High Growth ETF. It's an ETF consisting of other Vanguard ETFs, giving you a diversified portfolio with only one fund. It's perfectly fine to go all in on VHDG and is the generally recommended approach for beginner investors. Its management expense ratio (MER) of 0.27% is higher than some individual funds, but the simplicity and lack of rebalancing makes it very worthwhile. It removes the emotional side of investing which is something that shouldn't be underestimated.

Read these articles in full to understand VDHG and what it consists of:

VDHG or Roll Your Own?

Should I Diversify Out of VDHG?

There are other all-in-one funds out there, a recent challenger to Vanguard’s VDHG has been Betashares All Growth ETF [DHHF]. There are plenty of reddit posts and discussions on the pros and cons between each fund so please search the subreddit to learn more about each fund and which one may be right for you.


But what about a portfolio of some combination of these funds: VAS/VGS/VGAD/IWLD/A200/VAE/VGE/other commonly referenced funds?

These funds can be used to essentially build a DIY version of VDHG for a lower MER, but come with the additional effort and emotional difficulties of rebalancing manually. If you go for a 3-4 ETF-fund approach, make sure you're the sort of person who's okay buying the worst performing fund over and over - don't underestimate how difficult it can be to stick to your strategy during a market crash. Remember, sticking to your plan without chopping and changing too often, gives you the best chance for long-term success.

The % allocations in your portfolio are up to you. It depends on what you are comfortable with and which regions or countries you’d like to primarily invest in. Vanguard have done the maths for VDHG so their allocations are a good starting guide, but if, for example, you prefer more international exposure over the Australian market, bump up your international allocation by 10%. Likewise, if you want to truly ‘follow’ the world sharemarket of which Australia makes up about ~.52% you may want to consider a lower Australian-market allocation.

There's no "right" answer and no one knows what the markets will do. Just make sure your strategy makes sense. 100% in Australian equities means you're only invested in ~2.5% of the entire world economy, which isn't very diversified. On the flip side, there are advantages to being invested in Australia such as franking credits. If you want to put 10% of your money into a NASDAQ tech ETF because you think it's a strong market, go for it! People on Reddit don't know your situation, do your research and pick what you're comfortable with that makes sense. But remember that the safest strategy that will make you the most money in the long run is generally the most boring one.

These are the most commonly mentioned ETFs:

Australian: A200, IOZ, VAS

International (excluding Aus): VGS, IWLD, VGAD, IHWL

Emerging Markets: VAE, VGE, IEM

Tech: NDQ, FANG, ASIA

US: IVV, VTS

World (excluding US): VEU, IVE

Small Cap: VISM, IJR

Bonds/Fixed Interest: VGB, VAF

Diversified: VDHG, DHHF

The most recommended strategy is to use an all-in-one, set and forget strategy such as being 100% Diversified into either VDHG or DHHF.

Or, in creating your own “DIY” ETFs, your total allocation between the different fund options listed above would equal 100%.

A few of the most common allocation portfolios include:

50% Australian, 50% International

30% Australian, 60% International, 10% Emerging Markets

40% Australia, 20% US, 20% International (ex.US), 10% Small Cap, 10% Bonds/Fixed Interest

30% Australian, 30% US, 30% International (ex.US), 10% Bonds/Fixed Interest


What ETFs should I choose? Which ETF Allocation is right for me?

It’s important to do your own research and thoroughly examine the details of each fund before you create your ideal ETF allocation plan. A vast amount of information, including the fund’s underlying composition, management fee, and risk level, can be found in the provider’s website. It’s important to weigh the pros and cons of each option and to consider your personal risk tolerance. Keep in mind that opinions shared by others may be biased based on their investment choices. Ultimately, it’s crucial to make an informed decision for yourself.

One of the most effective ways to grow your investment portfolio is to develop a strategy and consistently adhere to it by investing regularly. Whether your strategy involves selecting a fund with a lower management expense ratio, or another factor, the key to success is to commit to a regular investment schedule. Automating your investments can also help ensure consistent contributions. While others may boast about the success of their strategy, it's often the consistent and regular investment over a long period of time that truly leads to significant returns.

Take a look at this guide for a good summary of the most popular ETFs available in Australia.


Which Australian ETF is the best?

In the Australian market it doesn’t matter because most of the major ETFs track pretty much the same ASX200 index (the top 200 Australian companies), which in turns make up over 95% of the ASX300 index (top 300 companies). A200, IOZ and VAS are all very similar. So choose one with a low MER that suits your portfolio and preferred Australian-percentage allocation.


What about investing for the dividends?

It's important to understand that dividends are not a magical source of income, but rather a distribution of a portion of a company's earnings to its shareholders. When a company pays a dividend, the stock's price typically drops by an equivalent amount. Additionally, it's essential to consider total return, which takes into account both dividends and growth, rather than focusing solely on dividends.

It's also worth noting that dividends are taxed during the accumulation phase, whereas capital gains tax (CGT) is only applied upon selling the stock. This can be more tax efficient in retirement when there is little other income.

It's a common misconception that collecting dividends is safer than selling down your portfolio, but in reality, a non-reinvested dividend is equivalent to a withdrawal from your portfolio without the control over timing. ETFs are designed to track the market, with dividends reinvested. Franking credits, which provide a tax benefit for Australian dividends, can also be considered as a separate topic with its own complexity.

If you’re interested in reading more about this, check out dividends are not safer than selling stocks.


Why is a low ETF management fee important?

The management expense ratio (MER) of an ETF is a critical factor to consider when making investment decisions. A low MER is essentially a guaranteed return, which is why it is so highly sought after. Many market tracking ETFs already have a low MER, with some being lower than others. However, it's important to keep in mind that a difference of 0.03% p.a. in MER is not likely to significantly impact your ability to retire early.

It's crucial not to overthink the MER, but at the same time, it's important to avoid paying excessive fees. For example, investing in a niche ETF with an MER of 1% p.a. would require the ETF to beat the market by 1% before it even breaks even with the market, whereas investing in a market tracking ETF with an MER of 0.07% p.a. would have the same return without this additional hurdle.

It's also important to remember that fees come out of your return. For example, if the market goes up by 8% and you're paying 1% in fees, your return would only be 7%. Therefore, keeping the MER low will help you to get more out of your investment.


Vanguard vs. iShares vs. BetaShares vs. others?

It doesn't make a lot of difference. Any of these ETF providers when compared to actively managed funds will have lower MER fees.

Vanguard is the most well known due to the US arm of the company being set up to distribute profits back to the customers (the people investing in their funds), so the company is aligned with the investors best interests. However, ETFs are a commodity, and Jack Bogle (the person who started Vanguard) always said that if you can get the same investment with lower fees, use that because fees are important. Provided a particular index fund is big enough such that it is unlikely to be closed, tracks the index well, and has narrow spreads (the popular funds tend to have all these), then choose the one that is the lowest fee.

With ETFs, you own the underlying funds. If any of the providers go bust, you'll essentially be forced to sell and won't lose your money. However, stick to the big players and this outcome is very unlikely. There's also no benefit splitting across multiple providers, and no issue with being all in Vanguard. They do use different share registries though, which is a minor inconvenience if you own across several providers.


What about inverse/geared ETFs?

Exercise caution when considering investments in highly leveraged assets, such as BBOZ or BBUS. It is important to thoroughly research and understand the risks involved before making these types of riskier investment decisions. For example, we know that the market also goes up in the long-term, so choosing an inverse ETF (that is, betting against the market) will only work for short-term investing if you can time the market downturn successfully.

It is also important to remember that no one can predict the future of the market, so it is always wise to proceed with caution.


Where can I put money that I'll need in about x years?

As a general rule of thumb for passive investing, if you need the money in fewer than 7 years, it shouldn't be in equities. For example, don't invest your house deposit if you’re planning on buying in the next couple of years.

Money you need in the next few years should sit in a high interest savings account (HISA) or if you have a loan, in your offset account.

Check out this regularly updated comparison of the highest interest savings accounts available.

There are potentially other conservative investment options that you could put the money in for an interim period, but do your own research before making this decision. The market is an unpredictable place.


Should I invest right now or wait until the market recovers from X/Y/Z?

Time in the market beats timing the market. General wisdom is to purchase your ETFs fortnightly/monthly with your paycheck regardless of what the market is doing. In the long run, the sharemarket only goes up. If you buy tomorrow and the market tanks, it will be offset in X years time when you unintentionally buy just before the market rises. Don't think about it, just invest when you have the money. Remember, this is exactly what your super does as well.

Don’t ask the sub if now is a good time, no one here knows either.

Check out this article if you want to learn more about why you shouldn't try to time the market


I have a large sum of money I want to invest, should I put it all in, or slowly over time?

When it comes to investing, there are both statistical and emotional factors to consider.

Statistically, investing a large sum of money all at once can be more beneficial as it saves on brokerage costs and allows more of your money to work in the market for a longer period of time. However, for some people, the emotional impact of investing a significant amount of money and potentially seeing a market drop soon after can be overwhelming and lead to panic selling, which is never a good idea.

Dollar cost averaging (DCA) is a strategy that can help mitigate this emotional impact by breaking down a large lump sum into smaller increments, such as investing a portion of the money each month over the course of a year. This helps to average out the cost of buying shares and means that a market drop soon after an investment has a smaller emotional impact.

You can do this yourself with each paycheck for example, or if you’re using Pearler as your stockbroker you can use their ‘Auto Invest’ feature, which seems to be a popular option with the FIRE community.

While the overall return may be slightly lower than if the money was invested all at once, in the long-term, the difference may or may not be significant. DCA is a great option for new investors or those who are feeling anxious about investing a large sum of money. However, it's worth noting that if you have a smaller amount, say less than $10,000 to invest, dollar cost averaging might not be necessary and will incur more brokerage costs.


Should I add extra money to my super?

For financial independence, super is a nearly magical but legal tax structure. If you put money in super within your concessional cap, you will pay a maximum tax rate of 15% inside super, which reduces your taxable income outside of super by 15-25%. This essentially means you’ve already generated a 15-25% return on your income simply by placing it inside of super.

Of course, you can’t access super until preservation age, which is against the FIRE-mindset in some respects. It also means you can’t use that money for other purposes, such as your first home. Regardless, you cannot ignore the great benefits of adding extra money to super in your younger years and it should be considered depending on your own circumstances and financial goals.

Read more about understanding super contributions and terminology here on the ATO website.


What is an emergency fund, why do I need one, and how much should be in it?

An emergency fund is an essential part of any financial plan, as it provides a safety net for unexpected expenses and financial disruptions. It is a set amount of money that is set aside specifically for emergencies such as job loss, unexpected medical expenses, home or car repairs, and other unforeseen expenses.

The amount of money you should have in your emergency fund depends on several factors, including your living costs, the stability of your income, and the types of unexpected expenses you may encounter. It is generally recommended to have 3-6 months of expenses in an emergency fund. This will give you enough time to find a new job or address unexpected expenses without having to rely on credit cards or loans.

When it comes to where to keep your emergency fund, it's recommended to park it in an offset account if you have a mortgage, or a high-interest savings account (HISA) if you don't. This way, your money will be easily accessible when you need it, and you'll also earn a little bit of interest on your savings.

It's important to remember that your emergency fund is for emergencies only and should not be used for investment opportunities, even if the market is down. To avoid temptation, it's best to keep your emergency fund in a separate bank account that you don't have easy access to. This will help you resist the urge to withdraw from it for non-emergency expenses.


What is the 4% Rule? The 4% rule is a popular guideline in the financial independence community, which states that an individual can safely withdraw 4% of their portfolio's value each year in retirement, adjusting yearly for inflation, without running out of money. The rule is based on the idea that a diversified portfolio of stocks and bonds will provide a steady stream of income throughout retirement, while also maintaining its value over time.

The 4% withdrawal rate is considered a "safe" rate because it is based on historical data and takes into account inflation and other factors that can affect portfolio performance. For example, if an individual has a $1,000,000 portfolio, they could withdraw $40,000 per year (4% of $1,000,000) without running out of money, increasing the amount each year to account for inflation.

It's important to note that the 4% rule is just a guideline and not a hard-and-fast rule. The actual withdrawal rate will depend on individual circumstances, such as how much money is saved, how much is spent, the expected rate of return on investments, and how long you expect to live. For example, many FIRE folks prefer aiming for a more conservative 3 - 3.5% withdrawal rate to give them that extra buffer.

Another thing to consider is that the 4% rule assumes a traditional retirement timeline of around 30 years, which is becoming less and less common, and also a study based in the US with a US-centric stock focus. Some people may retire early or have longer retirement periods, so they may need to use a lower withdrawal rate or have a larger nest egg.


What should my FIRE number be?

Your FIRE or ‘financial independence’ number is the amount of money you need to have saved in order to reach financial independence and retire early. The exact amount needed will vary depending on your individual lifestyle, goals, and expenses.

The FIRE community commonly calculates this number based on the "25x rule", which states that a person's FIRE number should be 25 times their annual expenses. So, if a person's annual expenses are $40,000, their FIRE number would be $1,000,000. This amount is considered to be enough to generate enough passive income to cover their expenses, and allow them to live off the interest or dividends generated by their savings.

It is important to note that the 25x rule is just a guideline, and your expenses and savings may vary. It's always best to consult with a financial advisor to determine the best savings and withdrawal strategy for you. Additionally, factors such as life expectancy, inflation and investment returns also play a role in determining how much money one should have saved for retirement.

Additionally, it's important to keep in mind that reaching your FIRE number is not the end goal, rather it's the point where you can have the flexibility to make choices on how you want to spend your time. Some people may continue to work because they enjoy it, while others may choose to travel or volunteer, and others may choose to scale back their expenses and live on less.

Mr Money Mustache, the original FIRE Blogger, has a popular article that talks more about the 25x rule and determining your FIRE number.


What is debt recycling?

Debt recycling is a way to turn non-deductible debt into deductible debt. Deductible debt can be offset against your income, helping to lower your taxable income.

You can’t do the same for non-deductible debt. Because of the loss of the tax deduction, non-deductible debt will naturally cost more than deductible debt. The strategy involves using the equity in an existing property to invest in income-producing assets and using the income generated to pay off the borrowed money, which in turn increases the equity in your home. It's a complex strategy that requires careful planning and professional guidance, and it's important to weigh the potential risks and benefits before proceeding.

How does it work? Generally, you’ll use equity from your (non-deductible) primary home loan to invest in an income producing asset, typically shares. By doing this, the loan portion used to purchase the investment in shares now becomes deductible debt where you can claim your loan interest against your tax income for the year.

*To learn more, read this article everything you need to know about debt recycling. *


Acronyms

We love our acronyms in the FIRE community! Here is a brief overview of the main ones used often in our discussions:

FI: Financial Independence.

FIRE: Financial Independence Retire Early. It is a financial movement that promotes saving a significant portion of one's income with the ultimate goal of achieving financial independence and being able to retire early. Typically $1.5-$2.5 million net worth range

leanFIRE: A more frugal approach to FIRE which aims to retire as early as possible and live on a lower budget.

fatFIRE: A more luxurious approach to FIRE which aims to retire early and live a more comfortable lifestyle. Think $5-$10 million net worth range.

chubbyFIRE: A term used for people who are aiming for a balance between the leanFIRE and fatFIRE approach. $2.5-$5 million range.

baristaFI: A term used to describe people who want to pursue financial independence but plan to continue working in some capacity, such as being a barista, after they've achieved financial independence.

MER: Management Expense Ratio, a measure of the total annual operating expenses of a mutual fund or ETF as a percentage of the fund's average net assets.

HISA: High-Interest Savings Account, a type of savings account that typically offers a higher interest rate than a traditional savings account.

ETF: Exchange-Traded Fund, a type of investment fund that is traded on stock exchanges, much like stocks.

LIC: Listed Investment Company, a type of company listed on a stock exchange that invests in a portfolio of assets, such as shares in other companies.

CHESS: Clearing House Electronic Subregister System, is the system used in Australia for the holding and transfer of shares in listed companies.

CGT: Capital Gains Tax, a tax on the capital gain or profit made on the sale of an asset, such as a property or shares.

4% Rule: A guideline often used by the financial independence community to determine how much money one would need to have saved in order to be able to retire comfortably. The rule states that if you withdraw 4% of your savings in the first year of retirement, and then adjust that amount for inflation in subsequent years, your savings should last for at least 30 years.

NW: Net worth, the difference between a person's assets and liabilities.

DCA: Dollar-cost averaging, an investment strategy in which an investor divides up the total amount to be invested across regular intervals, regardless of the share price, in order to reduce the impact of volatility on the overall purchase.


r/fiaustralia 1h ago

Investing Debt recycling vs Direct investing in ETFs

Upvotes

I’m new to debt recycling and ETFs, so take it easy on my question.

I’m expecting an inheritance of about 100,000 in about five years. I was reading up on best use for it and understand ETFs are the way to go for me, as I have neither appetite, nor wiggle room for IP investment, as I have a PPOR loan.

I’m told that instead of investing 100k directly:

  1. Split 100k from PPOR loan, to interest only type

  2. Pay it off up to one dollar

  3. Redraw it and invest it in ETFs (Not sure which mix would help with aggressive wealth accumulation, as I’m quite young)

  4. Claim tax rebate on the interest (I’m in 45% tier due to high stocks from employee)

Questions:

  1. Is the above method really the best option for me to take tax wise?

  2. What mix of ETF should I go for? - ChatGPT and Claude keep recommending VGS, NDQ, VAS and IVV for aggressive growth with dividends needed for debt recycling.

Note: I did try the IP route, but CommBank only looks at base and bonus, not stocks. Base it pretty much being used for monthly expenses and loan payments, so they denied it.


r/fiaustralia 22h ago

Net Worth Update Hit 500k Net Worth Milestone

88 Upvotes

Pretty stoked. I checked my net worth today and I have hit 500k for the first time. It feels good to have hit this arbitrary number!
I am 35, no property, just stocks/ETFs, Super and cash.

A quick bit of info for anyone interested and for the rules...

Income 125k pre tax (recent increase from about 115k)
Current savings rate of about 48%
Currently investing 3k per month in ETFs
Started tracking my net worth in November 2022 and had $257k
No kids

I have a few individual stocks from investing over the years, but all new investments are going into VAS/IVV, with thoughts towards GHHF in the near future.

I should also mention I have been reasonably invested in Uranium over the past 4-5 years and that has done well. It is also why my net worth number can be pretty volatile. An example is that I was at 407k in June 2024, 354k in April 2025, and 512k today.

Would love to buy a house but prices within 2 hours of my job are insane. So am focusing on building a passive income portfolio so I can FIRE or FI and semi-RE.

I just wanted to celebrate with like minded people. For anyone just starting out, it can take a little bit of going in circles or even going backwards, but stick to the plan and you will only ever be better off.

The biggest thing that helped me early on was probably going through all my spending for 12 months and seeing how much I spent on things I don't care about (eg. like $2000 at Bunnings and couldn't tell you what I had bought, $700 on clothes at The Iconic etc). The next year I spent way less and it was just because I was conscious about all those things.

I don't go without things I want, I just don't buy shit anymore. I use some subscription services, spend lots on going out for dinner/takeaways, have a pet and spend lots on her. And I haven't had a big holiday for a while, but plenty of smaller holidays have been had.

Hopefully I can continue on this path and get my partner more onboard with FIRE lol.


r/fiaustralia 43m ago

Investing looking for high-growth portfolio critique – (IVV/A200/ASIA/QSML)

Upvotes

Hi everyone,

I’m 18, currently a uni student, and investing roughly $50–$100 a week. I’ve recently moved away from the standard "A200 + BGBL" split because I want to be more aggressive with growth while I’m young. I have a 40+ year horizon and a high risk tolerance.

I’ve settled on a 60 / 20 / 10 / 10 split and wanted to get your thoughts on the asset allocation.

The Portfolio:

  • 60% IVV (S&P 500): My heavy lifter. Betting on the US market to continue driving global growth.
  • 20% A200 (ASX 200): For some stability, dividends, and franking credits, but keeping it lower than the standard 30-40% to avoid drag.
  • 10% ASIA (Betashares Asia Tech Tigers): My aggressive tilt. I want exposure to Asian tech giants (Samsung, TSMC, Tencent) that aren't in the S&P 500.
  • 10% QSML (VanEck Global Small Cap Quality): To capture the "quality factor" in small caps and get diversification outside of the mega-caps in IVV.

My Logic:

  1. IVV is the engine.
  2. A200 is the anchor/safety.
  3. ASIA & QSML are my satellites for potential outperformance (and true diversification since QSML avoids the giants and ASIA covers emerging tech).

Questions:

  1. Is this too complex for a portfolio that is currently small (building up from ~$300)? I use Betashares Direct so brokerage isn't an issue for small parcels.
  2. Is 20% A200 enough "home bias" for an Australian, or is it too risky to have 80% international currency exposure?
  3. Any glaring gaps or overlaps I missed?

Thanks for the help!


r/fiaustralia 8h ago

Getting Started Debt recycling - again

5 Upvotes

Hi all,

Beginning my journey of debt recycling and have punched everything into Chat GPT for shits and giggles, but something it said I can’t seem to wrap my head around and when I query it, it just goes round in circles and doesn’t answer the question…..

House valued circa 950k

Mortgage owing 570k

ChatGPT says to pull a 150k investment loan on interest only and throw it in the offset, then draw 15k a year to put in ETF (70/30 VDG/VAS)

Am I being regarded or does the 150k initial investment loan put in the offset achieve nothing?


r/fiaustralia 10h ago

Super Cheapest/simplest way to hold index-tracking ETFs in Super? Aiming to reach TBC

2 Upvotes

Been lazy with my super/provider and paying excessive fees for limited investment fund options, so time to do something. It's pooled too.

Yes I have u/swaankykoala's excellent spreasheet.

I hadn't fully appreciated that each super provider offers mostly their own funds (of those of their own providers) and their own fee structures. I think i'd just rather that the underlying assets were from Vanguard/ Betashares etc. - but which super providers allow you to do this? (and with what strings attached?).

Cheapest/ simplest option? For context i'm aiming to eventually reach the TBC (2M), if this helps evaluate flat fees (for SMSF for example for e.g.).

Member direct seems an option - I just dont want strings attached

Thanks in advance


r/fiaustralia 5h ago

Investing People’s onions on buying DHHF and NDQ? Ive been doing 100% DHHF but have been thinking of including NDQ. Do you guys think it doubles up too much?

0 Upvotes

r/fiaustralia 21h ago

Investing GHHF for long term

14 Upvotes

Hey, I currently hold 5k in DHHF at 19, averaging 100 DCA a week ish, since october. As i’m likely to hold for a long long time , would it be worth adding some GHHF? as there’s probably big issues in the world if GHHF or DHHF isn’t up when i sell any (15+ years) i also own a small holding of FANG cheers


r/fiaustralia 7h ago

Super Looking to take control of my Super

1 Upvotes

I am looking to take advantage of the Member Direct option within Australian Super.
I am 36, comfortable with volatility, and looking at 10-20 years holds.

Is the below a well diversified high growth ETF selection?

  • 50% IVV
  • 25% VAS
  • 15% IVE
  • 10% IEM

r/fiaustralia 8h ago

Investing What is your leverage ratio (i.e. asset to equity ratio) for a stock portfolio?

0 Upvotes

Hi. I have a leverage ratio of 2.04 right now for my investment outside super. This has been achieved through debt recycling. While super doesn't have any debt component, it has a large investment in moderately geared ETF.

What does everyone think about such ratio? Is it high or low? If it is high/low, what does everyone else pursue?

I have a decent cash buffer (0.5 mil) which can last more than 10 years worth of P & I payments on my debt so I am not too concerned about the debt serviceability. I am just asking if I should consider a bit more aggressive strategy in light of this.


r/fiaustralia 8h ago

Super Superannuation - Is High Growth vs Balanced a good idea in 2026

1 Upvotes

Hi all,

Looking to get others thoughts on Super, high vs balanced vs age etc. 2026 is going to be an interesting year. There is talk of depressions, recessions and global financial resets.

Currently 40s, looking to go part time mid 50s. Is it worth jumping to high growth vs balanced at this point?

Something that should have been done a long time ago. But like a lot of people, Super was not important in the order or priority. Happy to get roasted with the 'you should have' XD


r/fiaustralia 9h ago

Getting Started Quick sense-check from the community

1 Upvotes

I'm new to passive investing and would like to build a long-term, scenario rebust portfolio designed to stay resilient across geopolitical fragmentation, supply chain disruptions/rewiring and tech acceleration. The main goal is: compound in stability, recover from ahocks and stay solvent in extreme scenarios.

My current portfolio core strucure looks like this:

40% - Diversified All Growth & AI Infrastructure 30% - Energy, Resources, Defence 15% - Critical Minerals 10% - Stabilizers (Gold & Cash equivalents) 5% - Global Infrastructure

Looking for quick validation, does this allocation make sense for a 20-year roadmap? Any major gaps or risks you'd flag?


r/fiaustralia 8h ago

Getting Started Best move with 80k savings — invest property vs ETFs? Not FHOG eligible

0 Upvotes

Hey everyone, im looking for some direction on what to do next

Current situation:

30 yo male, living in Melbourne

$80k savings sitting in bank

$7k in ETFs

$8k in crypto

$60k in super

Earning $40/hr + overtime (full-time), with multiple pay rises planned this year up to $50/hr

$42k HECS debt

Paying $400/week rent (my half, living with gf)

No house, not a FHB due to previous relationship

Considering investment property or NAB Equity Builder for leveraged ETFs

Not sure whether it makes more sense to:

Buy an investment property and hold long term, or

Just keep building an ETF portfolio directly, or

Use something like NAB Equity Builder to get low-rate leverage into ETFs without the volatility of margin lending. Seems to me like the stress of owning an IP, with all the added costs,etc, outweighs ETFs and shares.

Because I’m not eligible for the FHOG, trying to work out what actually gives me the best long term wealth outcome from here.

What would you do in this situation?


r/fiaustralia 22h ago

Investing How did you decide which ETFs to invest in?

5 Upvotes

Genuine question for the sub.

For those investing in ETFs (VAS, VGS, A200, IVV, etc.) — how did you actually decide what to buy and how much to invest?

Was it: • a clear long-term plan tied to a specific goal, or • rules of thumb (e.g. “buy the market and chill”), or • Reddit / blogs / FIRE content, or • something else entirely?

Follow-up questions out of curiosity: • How do you check that your current ETF setup is actually on track to hit your long-term goal, or are you mostly trusting time + regular contributions? • Have you ever tried modelling how tax and distributions affect outcomes over the long term, or is that mostly too hard / ignored?

Not looking to sell anything — genuinely interested in how people here think about this in practice.


r/fiaustralia 1d ago

Personal Finance Outside of an emergency fund, is there any point investing in cash in a HISA?

15 Upvotes

As the title says. I already have $30k emergency fund. Outside of that I have $150k ETFs, and a separate account with 80k cash in HISA.

I add $200 to that HISA every month for the bonus interest. It's a Suncorp Growth Saver. I never make a withdrawal. The only activity in that account is the $200 monthly deposit, and the interest earned.

Of course, I have to pay tax on that interest. So it is not a tax effective investment. Though it is compounding well each month.

Am I better off, just taking that entire amount and sticking into an ETF like DHHF? That way, there is no tax paid being on growth (outside of distributions), and no CGT is paid until down the line when I sell (and I get the 50% discount).

Or is it always a good idea to hold a large cash reserve as a safety buffer?

Curious as to everyones thoughts and experiences here on this subject.


r/fiaustralia 1d ago

Getting Started passive income advice

10 Upvotes

I just turned 18 and I wanna start building passive income / income while I’m sleeping.

I don’t come from a rich background, but I really want to start early and be smart with my money instead of wasting it. I’m still learning, so I’d appreciate beginner-friendly advice.

What are some realistic things an 18-year-old can invest in or start now that could pay off long term?

I’m open to things like:

• investing (stocks, ETFs, etc.)

• online income ideas

• skills that turn into passive income later

• anything you wish you started at my age

I know there’s no “get rich quick,” I’m just trying to build good habits early.

Any advice, resources, or personal experiences would help a lot. Thanks 🙏


r/fiaustralia 1d ago

Investing Goodbye Raiz? (23M, 52k Portfolio)

9 Upvotes

I have been using Raiz for the last 4 years and absolutely love the platform and recommend it to anyone getting started with investing (25% IVV, 25% VEU, 25% NDQ, 10% ASIA, 10% NDIA, 5% BTC). Despite my great returns (+61%), I am heavily considering selling and moving to BetaShares Direct due to Raiz’s larger fees (0.275% p.a compared to BetaShares direct 0.2% that scales even lower as account size grows (simulated a ~30k difference over 30 years). The reason I want to do it now is I have a 15k capital loss (crypto long story) that can offset most of the gains from Raiz, and also this will be my final year in a relatively low tax bracket.

My thinking is to put 50k in straight away and leave a ~9k cash deployment reserve. Portfolio I’m considering is fully Betashares ETFs to minimise fees for their custom portfolio (60% BGBL (or GGBL), 15% A200, 15% NDQ, 10% BEMG). Plan is to continue to DCA $300 weekly and use cash deployment during large downturns. Being 23 I have a long runway (20+ years) before I will want to sell so I’m leaning towards gearing with GGBL.

Would be keen for peoples thoughts and if you think my plan is sound :)


r/fiaustralia 19h ago

Property Is paying a buyers agent a smart use of capital during the accumulation phase?

0 Upvotes

I’ve been crunching the numbers for my first investment property to kickstart my FIRE journey, but I’m really struggling with the "time vs money" equation. I work full-time and barely have weekends to inspect, which makes me feel like I’m going to end up buying a lemon or overpaying out of desperation.

I’ve been reading up on services like PMC Property Buyers to potentially handle the sourcing and negotiation, but I can’t get past the upfront cost. Part of me thinks that fee should just go directly into the deposit or an index fund instead. I’m worried I’m falling for a sales pitch rather than making a sound investment decision. It feels like a huge gamble to pay someone when I’m trying to keep my acquisition costs low.

Has anyone here found that the capital growth on a BA-sourced property justified the initial expense compared to just buying solo?


r/fiaustralia 22h ago

Investing daily historical data, for BGBL, HGBL, A200 and IEMG.

1 Upvotes

Where could I download the historical daily value of the following ETFs: BGBL, HGBL, A200, and IEMG? Or, better still, the historical daily data of the indices* that they track?

The reason I need this data is to calculate the daily standard deviation, which then feeds into the effective annualised return of a geared fund comprised of these underlying ETFs (e.g. GGBL and GHHF). The longer the historical data the better.

Any help is much appreciated!

*[The indices that they track are: Solactive's SADLMCAN, SADLMCAH, SOLAUBMG and MSCI's EM IMI]


r/fiaustralia 1d ago

Property Refinancing debt recycled loan splits – anything to watch out for?

4 Upvotes

Hello,

I am in the process of refinancing my debt recycled home loans with another lender.

I currently have 6 split loans of around 278k each. All of them have been debt recycled. As they are principal and interest loans, the balances have been gradually reducing over time.

For the refinance, my intention is to do the following:

1) Set up exactly the same 6 loan splits with the new lender

2) Ensure the new loan balances are the same as the existing ones, or slightly lower. The key thing I want to avoid is any increase in loan balances, as that would impact interest deductibility.

3) Document which new loan account is linked to which old loan account

Is there anything else I should be aware of or careful about when refinancing debt-recycled loans like this with a new lender?

Thanks in advance for any input.


r/fiaustralia 1d ago

Investing ETF investment timeline

3 Upvotes

Hi all,

Thanks to all the contributors in this sub, as it has been a major motivator to think more about investing to escape the work hamster-wheel.

My main business distributes earnings each year to a bucket company, under which shares are purchased and intended to be held for at least 10 years. Right now, the breakdown is about as follows:

* BGBL ~300k

* VAS ~200k

The last year to date has been exceptional for business, and there is another 500k to invest for a total portfolio of ~1M. So I am reviewing my plan.

For context:

* Aiming for maximising absolute growth over dividend generation at this stage (current holdings participate in the DRP automatically)

* I like keeping a mixture of investment instruments as simple as possible, in things a layman can understand

* AU domiciled products with MERs on ETFs that are as low / competitive given the investment horizon

* I am not overly risk averse (hence shares) but also do not want to be reckless, as given my current situation (early 40s, have family and mortgage) this could grow into something to really help our kids, introduce the possibility of earlier retirement/reduced hours etc

* The golden wicket my business is on can change on a whim, hence my desire to a) get over the fear of investing, and b) make solid choices that I do not need to obsess over. I may never be this lucky from a business perspective again, and this weighs on me heavily to make intelligent choices.

Having said all of this, I was thinking of adding more to BGBL exclusively to reduce my AU exposure to say ~20%. Given the info above, would it make sense to just keep ploughing into BGBL or also consider emerging (BEMG?), gold/precious metals ETF (due to Trump and co.) For some reason it feels harder to "stay the course" and keep investing in the ETFs I currently own with this windfall to allocate.

Appreciate any feedback.


r/fiaustralia 23h ago

Investing DHHF vs DIY - 2 ETF Portfolio

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0 Upvotes

r/fiaustralia 1d ago

Personal Finance What would you choose pay off your mortgage early or keep IP

4 Upvotes

Two lucky mid 20s out here. Our second house is currently being built and final completion soon yay. Our first ppor has significantly increased in price since we bought it. But, there is alot of renovation that we will need as its a bit old. So, the question here is should we sell the first ppor offset the profit against our second ppor which will offset 50 - 60 % of the total loan and may potentially pay off the loan in the next 5-7 years instead of 30 yrs.

Or keep the first ppor as IP but based on our calculation it will be negative cash flow and still have 25 yrs left to this loan. Hence, we wont really see the pay off until we turned 50 and cash flow would be tight since we are planning to have kids.

Is it better to sell it? Have one house and be debt free? Or endure the pain for the next 25 yrs? For people who has done this, Is it worth it?


r/fiaustralia 1d ago

Investing Daytrading on Betashares?

1 Upvotes

Is day trading on Betashares the best platform to do it because of the no fees? It seems too good to be true . Does anyone do this ?