Who to approach for advice

Hi All

We have 3 IPs currently, all on IO loans that are each slightly positively geared - playing the compound game.
Sweet FA in Super 380k combined (thanks to 20yrs of hospitality and not getting any for 10 of those).
Our income is good at 270k PA.
About 250k left of our home loan with 60k in an offset

Problem is we cant see the end game as we want to retire in 10years.

Can anyone recommend someone who can look at our position and roughly advise how we could be looking in 10yrs if we stay as is. We are happy to invest more whether shares or IP's.

Thanks

 

Talk to an accountant who is property friendly, good at tax and superannuation planning. But not selling you financial products which they are re selling.

The key is "growth".

 

With three IPs if you simply focus on being debt free over the next 10 years you'll likely retire fairly comfortably (I assume you own your home).

Saving money and paying off debt also gives you options to redraw that money and use it to invest in other opportunities.

 

I would suggest you see an financial planner - ideally an independant one who will just charge a fee for advice. You need to consider super which needs someone licenced for financial advice.

 

I would say $380K super is still a decent balance. If you able to reduce the LVR of the IPs to below 50% and increase the super balance to $760K (X2, equivalent to 5% p.a. growth plus $27K contribution p.a.) then you should be in great position to retire.

The above should be very doable for you given your income. You could even consider extra contribution to Super (see your accountant) since you are aiming for 10 year away.

Living off net rent plus dividend income from super

 

Sounds similar to us about about 8 years ago.
Does your super fund offer financial planning - might not be the best option but could be the 1st option for you. We struggled to find someone to suit us initially although the rules have changed a bit now. They are looking for ways to get ongoing income even though the concept is fee for service. One we went to who was well known in the media would have taken us down a very poor path by moving our super into a very expensive fund that has not performed.

Key decisions will be whether you want to keep the IPs and for how long and also how to best minimise tax - whats the risk with IPs needing maintenance and also success of tenancies todate. Also what you think you will need to retirement $$ wise.

We were happy to pay a fee for the planning and modelling various scenarios was very useful - in the end meant we could retire about 5 years earlier than we had originally thought. So finding someone that does this and what sort of inputs/outputs would be part of the process of selection. We do now pay an ongoing fee but we are happy with the results - our however does specialise in SMSF and that might not be the direction you want to take.

Key for us was being able to retire well before we could access our super. Hence investments outside super and our FP was property friendly (or at least not against property investment).

 

I am a financial planner (and accountant) and my (biased) opinion is that you should speak to a financial planner.

A financial planner will help define your goals and objective and then put together a plan on how to best attain those goals and objectives.

In terms of ongoing advice, depending on your goals and objectives, you possibly don’t require a “retainer” based arrangement and mody likely just need an annual check up to make sure your circumstances haven’t changed and that you are on track.

 

Is it a good idea to get a 'plan' that generally excludes direct residential property as an investment option?

 

Any financial planner can provide some modelling - which sounds like the advice you're after.

Having said that - it's not too difficult to work out future projections yourself if you've got a little bit of knowledge of excel and using compounding interest calculators.

Cheers

Jamie

 

Modelling is only as good as any assumptions. Aftre compounding is applied this means small variables can grow to mislead
1. Growth rate ? This should never be an assumed continual growth. There are always periods of correction
2. Interest rates ?
3. Market corrections and declines ? All markets correct - Look at property now. However you are either overly conservative not too optimistic. Both will be wrong.
etc.
Seeing a mystic with a crystal ball may be cheaper and just as reliable.

For the property side of things you could invest in the investor license for somersoft PIA software. It is brilliant and allows variables you can tweak. This caters to the property, its outgoings a etc and also growth and the debt. Then you could also seek financial guiance through your fund etc for the super.