Trust have 80 year life spans, so if you set up in this it really doesn’t matter.Don’t worry about paying back the loan before you turn 65. As a beneficiary of your trust and also as trustee you can determine what debt is paid off, when assets are sold and capital gains taken, and who this is paid to (specific and general beneficiaries).
The sad thing is, someone like me in their 30’s may think I’ve got 30 or 35 years to “get everything right”, and then I go and die well before then (how dare me!).
Get some good advice on investment strategy, include risk and level of debt, and advice on investment structures and your estate (ie will).
With 20K in super it’s not quite enough to go DIY, because the $1,000+ annual costs equate to 5% of your capital, add inflation of 3% and a decent return of 5%+, you would need about 13% minumum total return every year to get somewhere.
Put this in the best fund you can, or if you’re happy where it is, leave it, which will probably be the least expensive option in the short term.
I have friends in their 60’s and 70’s who pay $175pw in rent, but can’t see themselves buying a home for themselves. However, I have known them for almost 20 years, and their attitude was the same back then, “We can’t buy a home at our age!”.
Never too late to start.
Michael
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