To me if you have a million dollars in the bank you are a millionaire. When you see the property magazines and the cover is " young millionaires " which is these 24 year olds who have all these houses but there loans are through the roof. sure there setting themselves up but goodluck if anything happens. they are not millionaires.
Definition of a Millionaire
- Thread starter HotRod
- Start date
I understand the way you feel. I have currently both situations and I have been sitting on 7 digits in bank account for the last 3 years, waiting impatiently when I will find my next deal...
I too would rather have my cash in IP, an asset, than cash at bank loosing it's purchasing value......
I have though, Stage 3 process in place, so I will keep you posted:
Step 1, refinance 5 loans, pull out a title.
Step 2, obtain 80% loan against the title as a buffer or for further investment
Step 3, buy corporate title, perhaps 4 units, via SMSF.
Step 1 happened but solicitors lost the title, so another small obstacle but hopefully will be sorted out within next 4 weeks....
Step 2, in progress..
Step 3, once step 2 is finalized, but in progress.....
OK I am not sure what you mean by that but I will be gullible, check out UBANK SMSF at present these are their rates:
5.06% for the first 4 months then 4.46% (these are per year - so you work it out per month)
see the link:
https://www.ubank.com.au/ubank/web/...&_afrWindowMode=0&_adf.ctrl-state=k9hjhfzl5_9
Smsf
HIya
I am just curious; are there people who actually set up their own SMSF and then invest purely in Fixed Deposits at 5 plus percent? (bearing in mind 15% tax so net interest is reduced )
Asking cos i looked at my recent Australia Super and the return for Balanced Option is 0.98% for the year (i kid you not!)
HIya
I am just curious; are there people who actually set up their own SMSF and then invest purely in Fixed Deposits at 5 plus percent? (bearing in mind 15% tax so net interest is reduced )
Asking cos i looked at my recent Australia Super and the return for Balanced Option is 0.98% for the year (i kid you not!)
I have had returns in the "safe - interest bearing option" in my super and it still only got <3%!!
- mainly because most of it wasn't in a term deposit product, but "safe" bonds etc .....The Y-man
This assumes you are in the accumulation phase instead of pension phase (no tax in pension phase currently).
Yes, I have many friends who set up their own SMSFs and just put the money in the bank for term deposits.
For me, it's not a term deposit but just a temporary park before I will invest further..... Why not make the money earn something anyway...
My sister's and her husband's super for the last five years returned 0.8% so no surprise there. One point of note I am just amazed how most Super Funds managed funds have these "incorrect" names IMO, "Balanced", "Conservative", "Growth", "Diversified", etc....
If most of them allocate 40% AUS shares, 30% international, that represents 70% against other 30%, now how is this balanced when 70% are in shares? I attended an interesting seminar today, where the speaker said, if 100% of your pie was beef, what kind of pie is it? The answer: a beef pie, so not vegetable, not even meat in general, or pork...
Yet most of these names for these so called "Balanced funds" imply just the opposite meaning.... This is legalized robbery IMO. Educate yourself and take control of your Super.
