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Discussion Starter #1 (Edited)
Hi all,

has been a little while since I have posted, have been super busy working hard and studying.

Just wanted to chime in and let you all know that (due to a lump sum payment) my emergency fund is now completed funded with 6 months of expenses and I am well on my way to my house deposit goal of 20% down.

I recently transferred from one Government Department to another and asked to have my vacation leave paid out to me instead of transferred (I can always acrue vacation time- I shouldn't be taking any vacations anyways!) well that paid out to me $9K - $2K to finish off the FFEF and now $7K towards the house deposit.

Thankfully with no debt any more and a bit of a payrise I am able to save over 50% of my income towaards the house deposit. At this rate I'll have the deposit in 8 months.

It took me about 9 months to get the FFEF together.
 

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What about your retirement savings? You really want to ensure that you're now putting 15% towards retirement before you start putting money aside for a house. You don't want to get to 65, have a house, and no money to pay the property taxes with, after all...
 

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Great job!!!!! You must feel so free!!!
 

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Discussion Starter #4
Ah Greebo, I have missed your caring but penetrating questions!

I am in australia and here we have compulsory retirement savings called superannuation, it grows tax deferred and then once you are over 60 you can withdraw it tax free. every employer has the responsibility of paying 9% of the employees salary (on top of their take home) if they earn more then $6000 per year.

I'm a government employee so I contribute 5% of my salary (as required by the Public Servants Act I am employed under) and then the Government kicks in 12.5 % of my salary so through out this whole time I have been contributing 17.5%. but only 5% of that came from my paycheck.

I don't know that I am happy to wait until I am 60 to get access to my money though so once we have bought the house I will be putting aside on monthly ammount into very long term savings (outside of the superannuation vehicle - which can't be touched) so that we will have money should we need/want to retire early).

I have to admit that while I generally abhore the Government dictating what citizens should and shouldn't do, in this case I don't mind so much. I am not quite thirty and already have over $40K in retirement savings (Partner has over $50K and is only just 30) so it is a good thing I guess. I know that given my past bad behaviour I would never have saved it by myself and the only other good thing is that the account can be held with whom ever you choose (bank credit union etc) and can be allocated however you like ie either in mutual funds or equities or cash. I would be very stressed out if it was in some Government account (and I am a public servant so that tells you something) where they could get access to it.

So I'm pretty confident that I am all set in that area. I put my numbers into Dave Ramseys calculator the other day and I am fairly confident that we will be able to retire on about 75% of our income without having to touch our principal investment just living off the interest.

Strangely it is actually not something that I have ever worried about until the last year (probably becuase mine has lost 10% of it's value during the share market problems) I'm not worried, I am buying at a discounted rate evey month when my contribution gets added and I still have ages to go before I need the money. (can't actually get at it for another 31 years!).

Is this ok - or am I deluding myself if I only contribute 5% of my income to retirement (even though employer kicks in 12.5%). should I be contributing another 10% or do you that that it will be ok to buy the house first before I start this?
 

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Way to go on getting your EF fully funded and making such great progress on your house deposit fund. You should be proud of yourself! :thumb:
 

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Good for you MissManny!! EF funded and working on a house deposit!
 

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Ah Greebo, I have missed your caring but penetrating questions!
Sorry - I realized after the fact that I forgot to congratulate you.
:toothy: <-- Greebo - Self Portrait

I am in australia and here we have compulsory retirement savings called superannuation,
(snipped)
Thank you for the explanation. I didn't notice your location, and had no idea about Australian policies. I don't like Gov't intrusion either - and forcing you to save for retirement is REALLY intrusive - but dang, it's a *little* hard to complain about that particular policy. (Although I'm sure I could find better deals with better returns long term than some Gov't worker doing it "on my behalf"...)

Is this ok - or am I deluding myself if I only contribute 5% of my income to retirement (even though employer kicks in 12.5%). should I be contributing another 10% or do you that that it will be ok to buy the house first before I start this?
I think you're fine, honestly. You *could* kick up a tad more, so you can retire on - oh - 100%? Or even 110? But it's not like you *need* to - you're gonna buy something you can pay off in 15 years, right? So well before you get close to retirement, you're not going to have a mortgage anymore, so your expenses will drop significantly and you'll be able to do other kinds of investing to make your "golden years" really golden.
 

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Congratulations!!! That is totally awesome that you are debt free AND have a retirement savings.
 

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Sounds like your rolling right along! Congratulations on the completionon of another step!
 

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First off, congratulations! It was a small check to cut for you, but a big leap towards financial security. :)

I am in australia and here we have compulsory retirement savings...
Your government program sounds so good.

Here in Germany, we also have a compulsory retirement contributions, however, it is in the grubby hands of the government. And everytime they overspend (well, how often is a government staying within their budget?), they dip into that. So basically, it's just yet another tax that we're highly unlikely to see much - if any - returns on our payments. Yikes.

At least there is an option to opt out of gov pension plan, but you have to make more than € 52k consistently over the past 3 years. The problem for us is, since we just moved there, we're forced into the bonus-for-government-spending scheme.
 
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