For those who think they missed the boat

This was the only negative when investing in US, as a foreigner I could not source finance.

The power of leverage would have been awesome.

 

You still made a motza looking at their markets.

 

@kierank I assumed they meant bad debt mate. If the author means ALL debt, then that's a different story.

 

I suggest to people to split their debt into three categories:

1. Bad Debt (don’t use/pay back asap) - eg CC, car loans, personal loans
2. Necessary Debt (use/pay back asap) - eg PPOR loan (via offset)
3. Good Debt (use/never pay back) - eg business, IPs, shares, ...

 

I think a lot of people who have never read Barefoot's book have an opinion on it.

If the goal of the book is to give people the skills or a plan to own a PPOR and have a few hundred thousand in super or investments when they retire. They will at least be able to live a reasonable life style in retirement. Most people currently do not achieve this and many aged above 40 (or less) are not on a path to achieve this.

All I know is if I added money to super or ETFs I would be in a much better financial position today than buying property in Perth 12 years ago.

Once people are on the path to own a PPOR and several hundred thousand in super or shares at retirement. At some stage if their risk appetite is such maybe buying property is a good investment for some.

 

Diversification is good
I also think the same with property, buy in more than one State, reduce risk and capture different property cycles

 

Huge, huge point. And imho it's a really important factor for investors to consider. No dig at the investors only investing in one state. I just think being able mitigate some risk and capture different state cycles can be a really powerful strategy. Also might smooth out some of the bumps along the way.

 

There is a specific one aimed at helping educating kids around money https://www.kmart.com.au/product/th...d=Cj0KCQjwweyFBhDvARIsAA67M72sx3&gclsrc=aw.ds

His other book is great for adults but the one linked above is aimed at how to raise financially savvy children.

 

Awesome will check it out thanks!

 

It depends ? My accountant is also an investor been using him for years.
If they are managing your SMSF then they can provide advice

 

Our almost 15yo has been working for 11mths as a dishwasher at a local cafe for 6hrs a week (earns approx $90pw). He has his 3 bucket accounts - free for all spending (blow it on choc milk at school canteen and I don't care), short term savings (new computer game etc) and long term savings (for his first car). The ratios are 20:20:60. He is pretty dedicated about it and will put extra money into his long term savings sometimes and now has $3.5k in there and he's got at least 12mths until he can get his Ls.
We have a deal with the kids that we will match them dollar for dollar on their first car so it looks like he'll be driving a pretty nice car on Ls at this rate

 

Good idea. We'll see how big his nest egg gets. The incentive is to help it be a safe car and for our eldest that amounted to being a $6k car ($3k each) eight years ago.
He doesn't have to spend all his savings on a car and may decide to invest some in something else if he has a passion for something, start saving for a house or wants to go on a gap year etc.
The important thing is that he learns the value of saving and the beauty of compounding interest if you start early.

 

Attend meet ups, good way of networking

 

The ferry comes by every hour, just like buses.
However unless I'm thinking I'm getting a good deal I would not buy anything, RE or else.
Buying cause I may miss out? No thanks.
When REAs are rude and never return calls is not a good time to buy for me.
So unless I'd be buying a first PPOR I would not be fretting to get "into" any market unless the numbers look good for me.
Patience grasshoppa