I love the serendipitous way other blogs post on topics that just happen to be currently relevant to me. There are a couple of things on my mind at the moment – superannuation v. investing, living costs minimisation, and, on the side, investing for children.
Being a state government employee, I am, by default, invested in superannuation via the state government fund. It does pretty well in terms of returns, but the fees aren’t really all that low. The other thing I want to start looking at is the investment mix within it. Being over 50, future monies going into the fund get directed to the lower-risk end of the spectrum, and I’m not sure that’s what will be best for me in the long run, especially if it turns out that I won’t be able to reach RE before the common retirement age anyway. Dave at Strong Money Australia has just recently put up this post, which has really got me thinking that I need to make the time to look more closely at my super.
With living costs, the issue of house insurance is starting to pop it’s head up. My home & contents insurance will be due in a few months, and I need to make sure I’m appropriately covered as well as paying as little as possible for it. Having just had a read of a post over at <find this >, it had a link to a calculator to work out what the replacement cost of my home would be if it had to be completely rebuilt. It turns out I’m underinsured by about $20k (yikes!), so that is something to take into consideration at renewal time.
Investing for children
If you’ve read my ‘About’ page, you’re probably wondering why someone with no kids is interested in investing on behalf of them. Well, I may not have kids, but my friends and family do. Having just found out that The Niece is very likely to be splitting from her partner shortly, it’s now a topic of a bit more interest than it might have been previously, as she has two children under 5. My sister has been putting money away for them, but it’s good to know the pros and cons of the various options, so thank you to Ms FireMum at A Family on Fire for this new post. I’ll be passing on the link to both my sister and my niece. And having also just read through the entirety of Frogdancer Jones’ blog (Burning Desire for FIRE), I’ll be passing that one on as well.
This post also reminds me that I need to start looking at a couple of other things, primarily the mortgage (and how soon I can get it paid off) and the big trip for my sister’s 50th birthday in a couple of years – she wants to go to Hawai’i (to have a ‘Hawai’i 5-0’). If I’m going to travel half way around the world, I want to see more than one place. At my current savings rate, I should be able to afford the trip, but I look at those figures and think “that would be such a decent chunk off my mortgage”, and “I could be investing that”. Still, who knows what chances I’ll have to travel in the future? Time to check out the travel hacks as well, clearly.