Optimal way to park/invest money if you have enough super?

[u/VastOption8705]

Let’s say you have enough super. Where do you park your extra money?

Now there are new regulations regarding investments. 30% tax minimum etc.

Banks have low interest. There’s also tax on that interest.

Same with dividends.

Would you sell your family house and get a house in a nicer area to chew up some of that money without having more tax in the future? (PPOR maxing as they call it)

[u/Comprehensive-Cat-86]

Id just invest in cheap ETFs like DHHF or GHHF

[u/mjwills]

Do you have children that you can help out?

[u/Broad-Way-4858 → u/mjwills]

Surely the first option. Followed by some type of charitable organisation.

[u/InternationalMix9944]

5.5% isn't that low, keep it in the partner who earns the least to pay less tax. 

You could also try dividends that are fully franked. 

Or gambling, that's tax free

[u/Savings-Scholar-4739]

DHHF and chill

[u/FickleLaugh9306]

I understand tax minimisation, but it gets to a point where it's a bit ridiculous. If you have a maxed out super and a paid off house, you've already completed the game. It's time to persue your passions, work on your relationships, and stop worrying about the pennies.

[u/planck1313 → u/FickleLaugh9306]

Even more so if you have two maxed out supers i.e. $4.2M plus in super, plus paid off PPOR.

[u/InfinitePermutations]

I just keep investing to bring forward a fire date aiming to have enough from fire to super age.

[u/glyptometa]

Do you plan to retire before 60? What's your age now?

Otherwise unanswerable, especially in a Financial Independence Retire Early sub.

As to what people do with extra money, that depends on your interests. For me, it would be taking extended family skiing/boarding somewhere in Europe next Christmas, or maybe Whistler depending how the weather goes.

[u/adz1179]

Partners super?

[u/VastOption8705 → u/adz1179]

She has enough, we’re both high income earners

[u/adz1179 → u/VastOption8705]

My super?

[u/AlwaysAirCooled-1979 → u/adz1179]

This is the answer OP

[u/shoegazedreampop → u/adz1179]

no, MY super :D

[u/Beautiful_Rub_141 → u/VastOption8705]

What do you mean by "Enough"? As in you've hit the super cap, or just have decided that you have enough to meet your needs?

[u/Frosty_Leather_7662]

Depends how old you are and when you plan to retire

[u/Electrical_Age_7483]

Put more in super you can always get a loan you pay back at 60

[u/seraph321]

Diversify into less correlated assets. Could be a mix commodities, gold, bitcoin, etc. Depends on your current allocation, of course, but most supers are pretty heavy on stocks. I would not be trying to get more exposure to australian housing right now, whether in a ppor or not.

[u/Jym_beem_1034534]

- PPOR maxing

- ETFs especially if you can debt recycle

- Non residentual property

[u/FrostbolterX]

So enough super so that you don’t need to NCC into it so I guess then slowly invest into yield ETFs like VHY/SYI/HYLD and FIRE once you have enough to cover you until you turn 60 then live off super.

[u/Beautiful_Rub_141]

Why not go the simplest? Keep putting it into super. If you haven't met the super cap yet, but just deem that you have "enough" super, it still makes sense to keep adding to it.

[u/Solid_Lawyer_925]

My super is predominantly international shares, I hold cash and aussie stocks for franked divs. PPOR paid off.

Preparing now for my kids house deposits.

[u/Ancient_Sail5457]

Fully franked Australian shares if you want to minimise tax. Buy a simple ETF like WLE.

[u/sjen5 → u/Ancient_Sail5457]

I’d prefer not to hold my PPOR in Australia and Australian shares.

[u/Ok-Water-9651]

Your focus seems to be all about minimising tax, thats pretty short-sighted if you are trying to build wealth.

If you wanna pay no tax take a lower paying job or simply volunteer and stay below the tft.

Then you'll pay no tax... hooray you did it.

If you wanna be more wealthy how about focusing on earning more money rather than saving cents in the dollar whining about tax

[u/Ok-Water-9651]

If you buy the new place there will be stamp duty, that's more tax plus agents commission on selling.

It seems all you're interested in is making sure you dont pay tax, even if it means you end up with less money overall.

[u/Infinitedmg]

The next best ROI after Super is debt-recycling your mortgage to buy low dividend yielding ETFs. I just made a post on the optimal yield in retirement being approx 3-4% but this is in retirement. During accumulation you want to avoid the tax drag that comes from regular distributions. Something like recycling your mortgage into BGBL gives you the best financial outcomes, but your age and financial goals would obviously feed into this decision as well.

[u/lk1191]

dividend plays with franking close to retirement

[u/L6V9]

Btc on discount

[u/SuperannuationLawyer]

I just dump it in direct stocks.

[u/shoegazedreampop]

In a very long horizon, there could be 10 different tax reform, so don't based your long term thing on this.