What to do next?

I feel we're in a good financial position, but I don't know what to do next.

My goal: keep investing while we have good incomes, but nothing too risky or annoying

Salaries;
Me $125k part time, 35 years old
Partner $200k self employed, 40 years old
Two kids in primary school

Assets in personal names:
Ppor paid off value $1.6m
Ip1 fully offset value $600k
Ip2 fully offset value $650k
Shares $80k

Assets in trust:
Ip owing $390k value $650k
Eventually a capital loss of $150k due to bad investment with a jerk property scammer, still waiting to conclude.

What would you do next?
Seek financial advice?
Start a share portfolio in trust?
Buy another ip in trust?

Thanks. I'm a little lost

 

I think you need to increase your leverage by a massive amount. Given you have ample assets, I would upgrade the PPOR to something in $3m range. You can easily pay $1.4m mortgage and $3m house would grow a lot more wealth for you without any capital gains worries. Also it would elevate your lifestyle and quality of life. You also have plenty of buffers to ride any interest rate hikes.

This is what I would have done.

 

Imho that's your issue. Lack of direction/goals.

Start putting numbers to numbers.

Passive income of X amount by X years. How much equity will I need at what yeild.

The you can look at investing strategies/leverage into more assets etc once you have more of a direction.

 

First thing to consider might be to lend some cash interest free to the trustee of the discretionary trust so it could offset its loan. This will shift income from yourselves to the trust and potentially save you tax.

Seek legal advice first though.

 

If I read this right, you have $1.2m in cash offsetting the 2 IPs?

I would K.I.S.S and drip feed say $1m into ETFs and LICs by taking advantage of market dips...there'll be a few hereon. Keep $200K as a buffer in cash and offset one of the loans as you've done.

Then, I'd save and invest as much as possible over the next 5-10 yrs and add to the abovementioned ETFs and LICs.

By the time you guys are in your late 40s/50, you should have $2m in shares plus that will yield close to $100K net and passive....not to mention (eventually) super and the rents from your 3 IPs when they're fully paid off.

You could potentially even exceed $100K in dividends if you time things right and maximise your savings.

 

Interesting idea and one I hadn't thought of. Thanks for sharing it. We live outside of a capital city so our house is in a nice spot with a nice view. Probably stay here forever, I think.

 

I'd like to do this. What kind of person should I see? I get confused by all the different job titles and who does what.

Thanks!