Education When You Realise Your Head Was In The Sand

Discussion in 'Share Investing Strategies, Theories & Education' started by Meretti, 10th Dec, 2019.

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  1. Meretti

    Meretti Member

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    Long time lurker first time poster here :) I finally decided to join and post because I was moved by the continued intelligent, positive and supportive responses I've read on here to newbies such as myself. I've also enjoyed reading/experiencing the banter and camaraderie between members...so thank you for being a wonderful community of lovely sharing smarty pantses :D
    As for me, I've come to find myself in a position that I'm sure a lot of people have come to...in their 40's,recently divorced, not much to show for it and wondering what's next....So I'm after opinion's (not advice of course :)) on how to get myself into a better position/work toward retirement. I have multiple appointments set to hear financial advice but I would be really interested to hear from you fine people.
    Me...43yrs, no shares, no investment property, PPOR 580k owing on mortgage (house worth 700k), 105k in offset, 280k in super (paying 17% into Maritime Super but looking to switch) salary 120k but is going to 60k in 6 months due to job sharing for my child's mental health. There maybe not much I can do except pay my mortgage and keep adding to super but I would love to try and do better for my family.
     
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  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Start living off your proposed new income of $60k to get used to it, build up your buffer in the offset with the balance of the unused salary. You may wish to salary sacrifice to the max for the moment - why are you looking to move from your current super fund (poor returns, high costs?)
     
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  3. wylie

    wylie Moderator Staff Member

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    Welcome... :)

    Are you going to be able to pay the mortgage when you drop down to $60k? And is the job sharing going to be long term?

    Your child's mental health is top priority, but you need to not add to the stress you must already be under if the job share situation means you have financial stress as well.

    I'd just suggest (without knowing much about you) that perhaps if the job share loss of salary will add another level of stress, that you could rent a small place (just two of you?) whilst getting higher rent for your own place for up to six years (assuming a few things) while you are on lower pay, and move back in within that timeframe and you resume living in your own place and don't pay capital gains tax for the period it was rented. There are several things that you need to confirm before assuming you can do this, but it is just a thought.

    That way your rates, insurance, utilities etc become tax deductible, whilst in the cheaper rental place, your landlord will pay those things.

    I've never done this, but it is something that could work, as long as you could stomach it.
     
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  4. Meretti

    Meretti Member

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    I was originally locked into my super due to an EA but that has now changed so I'm looking around to make sure the little I have is growing.
     
  5. Meretti

    Meretti Member

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    Thank you for the welcome :) Yes I will be able to repay the mortgage..thankfully! Not that I hadn't thought of moving. Currently I rent out a backyard studio and will be looking to rent out another room in the house as well.

    The job share will likely be forever but I will be looking to recover some of my income in other ways. The nature of my job share will see me working away for a month at sea and then home for 3 months.
     
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  6. wylie

    wylie Moderator Staff Member

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    That's a tough gig. Does your child move from your house to his/her other parent's house while you are at sea? That must be hard to coordinate.
     
  7. Meretti

    Meretti Member

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    Yes my little darlin lives with my ex when I'm away (I currently work 1 month at sea then I'm home for a month) and when I'm home I have him. All this plus starting school, then me buying us a new home earlier this year = too much change and so he has developed high anxiety etc. That's why I will job share and at the same time try to find ways to still grow financially.
    Thank you for taking the time to reply :)
     
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  8. willair

    willair Well-Known Member Premium Member

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    Meretti,it's never as bad as it seems..The rental of the studio and the internal room for a start would balance out the cash flow maybe not up to your present level but that will also give you time to bond 100 percent with your Son as that is worth more then anything money can give..

    Plus from what some of my mates have gone through the same as yourself and in your age range most never recovered ,some just repeated the same then the same happened again at least reading your post you and your x are on the same page that alone is 12 out of 10

    I just have to ask one simple question,as i guess there would have been a settlement in property terms and not having a sophisticated understanding of numbers is that part done and dusted if so then full steam ahead..

    Also as i have a understanding the way the unions run within your industry keep an eye on your own mental health ,and i know after standing on a union blockade over 25 years ago in the cold winter morning at the entry to the port of Brisbane next to your union workers there is a lot of support when depression comes knocking..


    Welcome to the site..
     
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  9. Froxy

    Froxy Well-Known Member

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    @Meretti well done on getting back on track after a hard run and getting priorities right.

    Boring and abit of cost hit but Have you thought about estate planning? Might be worth getting a will together if not done to ensure your little one is protected.
     
  10. Meretti

    Meretti Member

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    Thanks for your thoughtful reply :) Yeah my settlement is all done and I'm definitely positive moving forward. That's why I came here...time to get to it, time to grow what I have left! How to do that is the question :) at this point change to the best super provider, try to add to the max and look for more income streams :)
     
    ellejay likes this.
  11. DoggaPP

    DoggaPP Well-Known Member

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    Firstly - you're gonna be fine. Tough but true.
    The first year is really all about ticking off the basics like you have said, paying the mortgage and adding to Super.
    1. Look at reducing your expenses a little bit a time across the next year (expenses are like habits, best changed in imperceptible increments!) and only buying things that are really meaningful across all levels of your expenses. The older I get, the more I enjoy things that money cannot buy (you may be beginning to feel the same way)
    2. Spend the next year educating yourself on how to invest outside of Super so in a years time you have a written investment plan and are ready to put some skin in the game (even $1 or $2 grand to start with is great). Investing outside of super gives you so much flexibility, choice and empowerment for the future - it is totally worthwhile pursuing.
    3. Plan to earn a little more from a separate income stream to those you already have - it does not have to be a big amount. We talk about diversification of investments, but nobody ever bothers mentioning the criticality of diversifying income streams. Just spend the next 12 months dabbling/planning and be ready to act decisively on this one in 12 months.

    This covers the three core pillars of growth and wealth. And remember, Rome was not built in a day .... but some building was done every day.
     
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  12. wylie

    wylie Moderator Staff Member

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    When you are a month at sea and home for three months, how will you be sharing the care of your son? I'm just wondering if being home for him when you have him could also mean during school hours you could do something to earn something (though school hours work is not easy to get)?

    Are you handy enough to do "hire a handyman" type of work that many people (men and women) simply don't have the skills to tackle. Leaflets dropped to tackle gardening locally? Things that don't need you to hold a building qualification?

    What sort of income streams are you thinking of?
     
  13. VanillaSlice

    VanillaSlice Well-Known Member

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    Uber driving can be done during school hours :)
    or maybe renovation on his home or IPs etc
     
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