A car crash, poor investment decision and important others to protect our loved ones

I heard a big BOOM and my car went flying onto the car in front of me… 5.30 pm on a Friday evening. What a week that started and now finishes badly! But wait, there is more, the guy who hit my car at the rear tried to escape the scene!
A lesson learned that I should have let him go and take his plate down instead of chasing him down the roads of my suburb… at the police station i was told that there was nothing they could do to help…

We’re now the end of week 2 since the accident occurred and need to find myself a new car.

lesson number 1:
When choosing for you insurance, take car market value insurance instead of set value if you believe your car is worth more than the market. tip – it should be for cars depreciating faster than others.
This mistake is about to cost me $2 000: i m about to get $2 500 from the insurance when i could have sold easily this nice beauty for $4 500 privately.

lesson number 2:
You can negotiate a LOT of things with your insurance. Especially when you re not at fault:
– No excess paid upfront
– The other party to pay for your car rental until you purchase a new one
– Psychologist if you need help can be taken free of charge
– Etc etc

lesson number 3:
I confirmed that i prefer to pay $900 in excess to lower my yearly insurance bills, and for a few reasons:
– It forces you to be a good driver
– It saved me around $500 across 5 years by paying $100 of premium every year

If you have any idea of what would be a good replacement car, leave a comment…


Switch super-annuation update

I’ve switched as the readers know from amp to Hostplus but not without troubles:
– they ve mixed up my application, couldn’t open on line and ended up with two accounts
– My wife still hasn’t had her roll-over transferred after one month from amp when mine was done in a few days

I also took the chance to review our insurances and took the excellent advice from Scott Pape (the barefoot investor) to increase the standards. I have chosen to work with my insurance broker who has given some great prices and good advice along the years, such as:
– taking death and TPD Inside AND outside of super to maximize your chances of a quick payout should something wrong occur
– having a look at the payout vs claims of the insurance. in my case, i have chosen onepath for that specific reason
– ending with a cheaper bill than standard insurance super is a big plus!
One funny comment i would make: while it s good to take advice from experts it s always good to make comparison. In my case, the broker didn’t believe when i mentioned that Hostplus was having a mixed index investment option at 0,02% MER per annum.


Private health insurance cover: my daughter needs speech therapy – Do I take a new private insurance to cover that risk?

I used research online and then look at the PDS of the insurances that suited my needs for speech therapy. Turns out that even if my insurance does not cover speech therapy, my excess is quite competitive with $200 vs excess of the others $500 or day share cap.

At the moment, I pay $239 per month when the rest was largely above $300 minimum.


Update on my Japan property investment:

It settled! – I even got a bit back from the agency i m using as i ended using their service for an apartment costing $37k when we budgeted $45k.

I’m now waiting for the contract originals to be sent over, the first month of rent to be on my trust account with them in Japan, and see from there where this adventure takes me.

Next question is tax – do I need an new accountant if I buy more properties? Will I buy more properties? It is highly recommended that you take one to manage your tax affairs if the income grows about the minimum threshold for tax in Japan..


Refinancing with loans.com.au

We bloody had to redo the whole thing and have it witnessed again as it turns out that police officers can witness NSW properties but not QLD ones.. what a great lesson to read all line items when you receive documents.

Anyhow, it’s now finally signed and i’m now waiting for the settlement date to be confirmed.

I received a call from CBA who tried to win back my business.. fun to hear that they decreased my rate by 0,4% when my broker mentionned there was nothing he could do.

Still surprised that they could beat loans on the PPOR but not the investment property. Since we don’t have a mortgage left on the PPOR…

Now hard times ahead and we will need to update our whole direct debits!


Early retirement plans:

I had to close my account in France definitely as they started to charge me 5 euros per month, which seems to become the norm in France.

Since we re most likely going to end up with any pension whether in France or Australia, I have checked to see if I could pay the France centrelink equivalent to get pension… 10 years gone from France would cost us $180k and it sounds a bit risky to me not knowing where we will lend, nor if full pension will still exist as we turn 70 (i doubt the age pension will stay as it is now – 65). Not even discussing about the issue to sustain a job after 50 IMO!

So our plan is still to invest with interactive brokers and get dividend paid in euros in France….

We have now to analyse the international tax burden..

How do you plan for your retirement?

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