After allowing the practicalities of saving for FIRE to continue on auto-pilot for three years, I feel like it is time to come back, review where we are, and look at our FIRE goal. A Vague FIRE Goal The first thing to note is that I can’t remember what our old goal was! That has to be a cardinal sin for someone reaching for FIRE. I know we want to retire early, but what age is early to us? I’m 48, and we are following a SlowFIRE path (i.e. still spending a lot with a low savings rate). That is where this blog comes in handy. Going back through my ... Show Me More!
Let me start by acknowledging that this is a post of privilege. I support paying tax. Sometimes I’m a direct beneficiary of what those taxes are spent on (health, education, roads). If not, my taxes go to benefit others who are not as privileged or lucky as I have been (pension, disability, unemployment benefits). Growth We have the majority of our FIRE savings in a Vanguard Managed Fund. As most of you know, last year was extraordinary in terms of market returns – over 20% for our superannuation, for example. Mr. ETT and I were astounded to see we had earned $40,000, of which $31,000 was Capital Gains. The year ... Show Me More!
In Part 1, I researched four main components of Crowd-Sourced Equity Funding—The Company, The Intermediary, The Investor and The Offer. Today I run through the process of equity crowdfunding, from inception to closure. Equity Crowdfunding Step 1 A company decides it would like to raise some crowdsourced funds. It has made sure it meets the requirements, so chooses an intermediary to host its offer. As of February 2017, only 7 companies have licenses to act as CSEF intermediaries. This will increase in the future. The hosting intermediary investigates the company to make sure they can take part in equity crowdfunding. This includes checks to confirm the identity of a company. ... Show Me More!
Recently, the Australian Government legislated a new way for the average Australian investor to support start-ups and small businesses: Crowd-Sourced Equity Funding (CSEF/CSF). Prior to this, if you wanted to invest in a company, you found a broker, paid a fee, then bought shares. What if you wanted to help a business grow, yet they weren’t listed? You’re no angel investor, swooping in and supplying millions of dollars in funding (if you are, welcome… but I’m not sure what value you’ll derive from this blog!) The Government passed legislation to enable this form of investment on 29th September 2017, but it’s only from January 11th 2018 that ASIC approved a ... Show Me More!
They say that the best time to start investing is yesterday (or even better, when you are a wee sproglet, earning your first pocket-money). The second best time is now. Yet, you don’t want to go throwing your money at something you don’t understand. In 2016, we were at the beginning of discovering the world of Financial Independence Retire Early (FIRE). I was reading as many blogs as I could get my eyeballs on. I learned that the best way to reach FIRE was by investing, either in property or shares. We couldn’t just jump right in, though. While we were lucky that we didn’t have any debt, we did ... Show Me More!