Hi all - I’d really appreciate some perspective on our situation and what I might be missing or not thinking about:
Married, both mid-40s with 3 school-aged kids.
We’ve recently paid off our “forever home” (redraw available).
Current position:
One income of ~$145k (partner was the higher income earner but currently unable to work due to health reasons)
Potential additional ~$25k/year from a small business, but not guaranteed due me having zero energy left.
~$100k in ETFs
~9 months emergency fund in HISA (kept deliberately high due to medical costs and single income)
~$65k in a term deposit currently earmarked for private school fees
Private school fees are ~$34k/year for the next 2 years, but then taper down after that, to be much more manageable.
Goals:
Ideally reach FIRE (or at least strong financial independence) within ~10 years, particularly due to health.
Fund school fees in a smarter/more efficient way than just drawing down cash.
Context:
I know private school is a luxury, but the local option isn’t great and the kids are settled and happy — and after a pretty turbulent few years, we’re not looking to disrupt that
Partner has ongoing medical expenses, which also drives a more conservative buffer and not sure when/if he will work again (currently has 6 months left of income protection then ? so I’m not counting that)
What I’m considering:
Maxing concessional super contributions
Potentially using debt recycling (via redraw) to invest in ETFs
Using available cash flow (~$1.5k per fortnight) to either invest directly or accelerate recycling
Possibly debt recycling into something like VHY (or similar) to generate higher dividend income to help fund school fees
Where I’m unsure:
- Whether debt recycling makes sense in our situation vs just investing regularly
- Whether targeting higher dividend yield (to help with cash flow for fees) is smart, or if that’s sacrificing too much long-term growth
- Whether we should be using the $65k differently (e.g. partially investing vs keeping it safe for fees)
I feel like we’re in a decent position but not fully optimising things, and I’d really value any perspectives — especially from those who’ve navigated debt recycling or FIRE while managing large near-term expenses like school fees.
Thanks in advance — I’m keen to learn 🙏
And for anyone reading this…let this be your gentle reminder to get your income protection sorted. Life can change so so quickly!