The Barefoot Investor
The Barefoot Investor, Audible edition — Supplementary material
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The Barefoot Investor
The $226 484 difference
In this graph, ‘your fund’ is the higher fee one, and the ‘alternative fund’ is the
lower fee one.
Source: ASIC MoneySmart Managed Fund Fees Calculator. This is not a typical managed fund scenario and should
be used for the purpose of comparing the impact of fees in a hypothetical situation only.
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The Barefoot Investor
The Blow Bucket
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The Barefoot Investor
The Mojo Bucket
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The Barefoot Investor
The Grow Bucket
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The Barefoot Investor
Putting it all together
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The Barefoot Investor
Put in your numbers, name your accounts, and actually see where your money
is going.
Now you have a simple, visual plan.
Now you are in control.
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The Barefoot Investor
Domino 1: Calculate
Write down all your debts—credit cards, car loans, parking fines, money you owe
to friends.
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The Barefoot Investor
Domino 4: Detonate
Rearrange your list of debts from smallest to largest. (Yes, it’s the same table you
used to calculate your debt, but this time you’re ranking the debts by size.)
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The Barefoot Investor
Leave your emotions at the door
This chart from one of the world’s biggest fund managers, BlackRock, nails how
most investors behave.
Sources: BlackRock; Informa Investment Solutions. The information provided is for illustrative
purposes only.
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The Barefoot Investor
As this table shows, the longer you invest, the longer your money has to grow
through the magic of compound interest (remember: this is when you reinvest
your earnings so you earn interest on your interest).
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The Barefoot Investor
Faceplanting on a treadmill
Have a look at this ‘shopping list’ and see how prices have increased since the
1970s.
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The Barefoot Investor
The future is going to be expensive
Look at this new ‘shopping list’ and pick the decade you’re likely to die in. (So I
don’t completely freak you out, I’ve used a conservative 3 per cent inflation, not
the historical 5.5 per cent.)
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The Barefoot Investor
The property investor
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Lower income earners
When you get your dividend reinvestment plan (DRP) letter in the mail, tick ‘full
participation’.
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The Barefoot Investor
The miracle of
compound interest
This chart tells the story of yours and
your mate’s investment.
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The Barefoot Investor
Find your financial advisor the Tinder way
To find a lawyer in your state, head to the Law Society website and find a solicitor
who’s an expert in professional estate planning.
Here are the websites by state:
ACT: actlawsociety.asn.au/resources
NSW: lawsociety.com.au/for-the-public/find-a-lawyer
NT: lawsocietynt.asn.au/nt-legal-directory/current-nt-practitioners.html
QLD: services.qls.com.au/Web/FindLegalServices/OnlineReferral.aspx
SA: referral.lawsocietysa.asn.au
TAS: lst.org.au/find-a-lawyer/
VIC: liv.asn.au and search ‘looking for legal help’
WA: lawsocietywa.asn.au/for-the-public/
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The Barefoot Investor
Where to get more info —
in two-and-a-bit pages
If you’re in financial strife
The National Debt Helpline is a not-for-profit service where experienced
financial counsellors offer free information and advice. It’s all confidential
and they won’t try to sell you anything.
These guys are the unsung heroes of the financial services industry. In your
darkest hour, they’ll stand shoulder to shoulder with you and fight for you
when no one else will.
ndh.org.au
Call 1800 007 007
If financial stress is affecting your mental health, Beyond Blue and Lifeline
are good places to start to find the right support.
beyondblue.org.au lifeline.org.au
Call 1300 22 4636 Call 13 11 14
Age pension
If you need help setting up and maximising your age pension, you can arrange
a face-to-face meeting with one of Centrelink’s Financial Information Service
Officers (FISOs):
Call 132 300 (Centrelink’s Older Australians line)
For general information about your entitlements and the thresholds for
earning, go to:
servicesaustralia.gov.au/age-pension
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The Barefoot Investor
Finding the right financial advisor
While you should never give up financial control, there are times that you
need the guidance of an expert advisor. Read pages 235 to 242 where there’s
a wealth of information. TLDR (too long, didn’t read): start with your super
fund’s financial planner, and go from there.
Government support for home ownership
Don’t count on the government helping you out, but check if your eligible for
support:
First Home Owner Grant (FHOG) scheme
firsthome.gov.au
National Housing Finance and Investment Corporation (NHFIC)
nhfic.gov.au
Health insurance
Don’t use iSelect and other comparison sites. Instead, use the government
site where every health provider is listed:
PrivateHealth.gov.au
HECS-HELP
Check the current loan repayment thresholds and rates:
studyassist.gov.au/hecs-help
Insurance
If you need help sorting out your insurance, call your super fund. They’ll have
financial advisors who can do a risk assessment and recommend insurance
both inside and outside of super — and at wholesale rates instead of the eyegouging commissions most financial planners charge
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The Barefoot Investor
Superannuation
When you’re googling to find the best options, check here:
YourSuper.gov.au
Moneysmart.gov.au
Choice.com.au (subscription, but they’re good eggs)
Check the current ‘comfortable standard’ according to the Association of
Superannuation Funds of Australia (ASFA) here:
superannuation.asn.au
If you’re a low or middle income earner, check your eligibility for government
contribution to your super fund. Search ‘super co-contribution’ on your
fund’s website, or via the boffins here:
ato.gov.au
If you’ve got multiple super funds, you can roll them into the one fund to
avoid extra fees, and find your lost super, through your ATO account:
my.gov.au
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