Is my financial planner giving me good advice?

Discussion in 'Investment Strategy' started by LA1, 15th Feb, 2020.

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  1. Angel

    Angel Well-Known Member

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    I can understand where your FP is going if his suggestion is to offload the IPs and buy a home to live in near the schools at Kedron. I'm thinking Stafford or Wavell if you cant get into Kedron. If you can find a house that you can either rent out or live in for now, it will probably be cheaper to get into today than it will be in a few year's time when you and your partner are looking to settle down. In the meantime, you would still have costs of owning one or two properties instead of five. But you already have a house in Nundah and Nundah is an easy drive to both the airport and Kedron.
     
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  2. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    To be fair if you walked into the Financial Planners office and said "Hi, I have this portfolio which is currently quite negative but want to quit FIFO in the not too distant future and my income will go down and want to live near my kids school" then his advice might actually make more sense.

    You have presented facts at the beginning post then give extras which do sort of change the holistic idea.

    However I do think that having a diversified portfolio as you do is rather nice but it may need some tweaking. If you have those losses that you are carrying forwards you might chose to sell a couple that have profit but not good performers and reinvest in better IPs or into a new PPOR.

    Just be mindful about land tax, selling costs, timing of selling and what entity everything is in.
     
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  3. marmot

    marmot Well-Known Member

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    If the FP had had a fair bit of experience with FIFO workers, then he has probably seen many get into seroius financial trouble when they lose their jobs, especially in a downturn and there is no equivalent position in the cities.
    Especially for jobs like Geologists,Driil and Blast/ charge up and excavator loaders etc .
    Even if they find jobs their income can drop by 50%.
    Geologists just end up at Maccas flipping burgers.
    The industry is renown for shedding workers in a hurry when commodity prices fall into a giant hole.
     
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  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    I wasnt that lucky :)

    ta
    rolf
     
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  5. kierank

    kierank Well-Known Member

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    Years ago, I had a friend who was a geologist. He worked for a mining company who used to helicopter drop him and his fieldee in the middle of nowhere in the NT.

    He used to say it was time to come back to civilisation when he found his male fieldee sexually attractive :D.

    Back on topic
     
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  6. Beano

    Beano Well-Known Member

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    I think the moral of the story is buy something you do not have to sell.
    Every time you change your strategy there is so much costs
     
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  7. kierank

    kierank Well-Known Member

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    I think the moral of the story is to have a strategic plan so that when you buy something it is less likely that one has to sell.

    How many businesses go “belly-up” because they have no strategic plan or a poor one at best.

    IMHO, investing is a business and a very important one at that.

    It never ceases to amaze me that the majority of people put more planning effort in their annual holidays than they do into their financial future.
     
  8. Trainee

    Trainee Well-Known Member

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    The problem is that the op hasnt stated a long term goal. If you want more cashflow and a ppor, the advice is ok. If you want more retirement assets, then no. Like most suspect you told the fp only the short term wants without stating your long term want.

    though if you were that clear about it you wouldnt need strategic advice from the fp.
     
  9. LA1

    LA1 Member

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    Thanks everyone for all of your great input I really appreciate your time in responding and to those who gave me some positive encouragement too, thank you! You've all certainly given me a lot of things to think about and made me realise I need to put a lot more thought into my long term strategy, I think I will sit tight for a while, do more research, and think through some other options, won't be making any hasty decisions now, thank you!
     
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  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You can always sell a property next week, but you can't undo a sale, so don't rush it
     
  11. craigc

    craigc Well-Known Member

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    So a $10k investment to return increase of $10,400 pa (gross) rent + depreciation claims + likely value uplift?
    That looks like a great return & a no brainer to me if you have the $ to do it.
     
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  12. albanga

    albanga Well-Known Member

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    Am I reading this correct that your saying a 10k investment can yield a 100% rental increase and less than 1 year ROI and your questioning whether it’s worth it.........

    I wouldn’t care if you were developing the property in 2 years it’s worth the hassle. Just hire a PM! I’ll shoot you details for a few who can manage it for you. Even with a 25% loading your still doing cartwheels.
     
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  13. albanga

    albanga Well-Known Member

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    These posts are always difficult because I always feel we never have the full story.
    Reading over OP posts I’m getting more a picture that the conversation with the FP was not one of wealth creation.

    I have a feeling you called the meeting because you and your partner are both working FIFO earning huge pay checks and as you said are already in a position where the property costs are leaving you with little change.
    You want to give up that lifestyle and start enjoying life more with your 3 kids.
    It’s not wealth creation, it was more let’s get a plan in order to survive and start living life.

    So let’s be honest if your heads just above water now your definitely drowning when you stop earning FIFO paychecks. So based upon that limited info I also agree you need to downsize.

    I however wouldn’t sell down to rebuy blue chip. That seems silly advice.
    I would just keep my best stock and to me 700sq in Dandenong is a gold mine. This is probably my Melbourne bias but long term hold I would be keeping that and burwood.

    Offload the rest, do your Reno and buy OO in Brisbane.

    *Mic Drop*