Beginners - Introduce yourselves!

[Sharkman]

Hey everyone,

I’m 35 and sick of working hard for my money and want my money to work for me. I simply don’t think my body will last at the rate I’m going as far as work. I also want to live life and not work until I’m old enough to get the pension!

i hear ya, i'm 40 and well and truly sick of all the corporate bulls#$t i have to put up with these days. i've had the advantage of having started investing when i was 15 though, so i've had the benefit of decades of compounding and am nearing the end of my working life now.

if i was starting out again, i would strongly consider index ETFs. those weren't really prominent when i first started, so i had to pick stocks to invest in directly, but now there's a whole plethora of high quality, low cost products from reputable managers like Blackrock, Vanguard etc. these have a number of features that make them an excellent choice for both newcomers and experienced investors alike. i've been investing for 25 odd years and have a significant % of my capital in index ETFs.

a few to get you started (not recommendations, just a few well known ones in case you don't know what to look for) would be A200, IVV, VAS, VDHG, VEU, VGS, VTS. Google those, read up on how they work and see if they suit your requirements. be aware that it will take many years to get the compounding snowball rolling, but it's one of the most reliable ways to reach financial independence IMHO, and it doesn't require much expertise.

 

[Booze]

i hear ya, i'm 40 and well and truly sick of all the corporate bulls#$t i have to put up with these days. i've had the advantage of having started investing when i was 15 though, so i've had the benefit of decades of compounding and am nearing the end of my working life now.

if i was starting out again, i would strongly consider index ETFs. those weren't really prominent when i first started, so i had to pick stocks to invest in directly, but now there's a whole plethora of high quality, low cost products from reputable managers like Blackrock, Vanguard etc. these have a number of features that make them an excellent choice for both newcomers and experienced investors alike. i've been investing for 25 odd years and have a significant % of my capital in index ETFs.

a few to get you started (not recommendations, just a few well known ones in case you don't know what to look for) would be A200, IVV, VAS, VDHG, VEU, VGS, VTS. Google those, read up on how they work and see if they suit your requirements. be aware that it will take many years to get the compounding snowball rolling, but it's one of the most reliable ways to reach financial independence IMHO, and it doesn't require much expertise.

Appreciate your thoughts! These have always seemed to be the safest investment in my eyes, from what I’ve learnt so far anyways.. But get excited with the movers and shakers! Hopefully after a couple of years learning how/what to trade I will get a bit more risky??

 

[Booze]

Appreciate your thoughts! These have always seemed to be the safest investment in my eyes, from what I’ve learnt so far anyways.. But get excited with the movers and shakers! Hopefully after a couple of years learning how/what to trade I will get a bit more risky??

Another beginner question you may be able to help me with, let’s say I look in VAS (which I have before), how do I find the dividends given by that certain stock? I.e using CMC markets, where can I find this? And also how do I calculate R.O.I?
I.e return on $100k/year.... basically I’m trying to work out when I can live on dividends and actually enjoy life a bit more!!!

 

[frugal.rock]

Hopefully after a couple of years learning how/what to trade I will get a bit more risky??

Hopefully after a short period, risk is understood, and managed appropriately.

how do I find the dividends given by that certain stock?

ASX announcements for the particular ETF or the web page for the fund traded, should be a duplicate though.
Good luck.
Enjoying some "booze" right now.
Southern Comfort pre mix cans.
Where's my fried chicken dammit!

 

[Booze]

Hopefully after a short period, risk is understood, and managed appropriately.

ASX announcements for the particular ETF or the web page for the fund traded, should be a duplicate though.
Good luck.
Enjoying some "booze" right now.
Southern Comfort pre mix cans.
Where's my fried chicken dammit!

Yes me too home brewed pale ales for mee!!
So what I dont get is what’s the difference between putting money into an ETF and putting money into my super? They claim to be making me 7% a year... no dividends? Compounding values??
Am I asking silly questions?

 

[frugal.rock]

So what I dont get is what’s the difference between putting money into an ETF and putting money into my super?

Well, firstly, a significant difference is the manager.
Secondly, risk, and the all important management of risk
Thirdly, taxation implications, here, now and later.
Fourthly, experience.
Just some thoughts.
Cheers.

 

[Sharkman]

Hopefully after a couple of years learning how/what to trade I will get a bit more risky??

if you plan to be living off your investments rather than working for a living, you might want to prioritise capital preservation over chasing risk and rewards. by all means hive off a small satellite portfolio for the more speculative stuff after establishing a solid reliable core, but if you throw everything into high risk stuff there is every chance you will find yourself back in the drudgery of the rat race sooner or later.

Another beginner question you may be able to help me with, let’s say I look in VAS (which I have before), how do I find the dividends given by that certain stock?

VAS is right here: https://www.vanguardinvestments.com...il/ETF/portId=8205/assetCode=EQUITY/?overview

best place to look for the relevant figures is the fund managers themselves. these things are tightly regulated by ASIC, it is highly unlikely that they'll be telling porkies here.

 

[Booze]

Well, firstly, a significant difference is the manager.
Secondly, risk, and the all important management of risk
Thirdly, taxation implications, here, now and later.
Fourthly, experience.
Just some thoughts.
Cheers.

Tax implications for super or stocks do you mean? Is it true that very cent you make on stocks, but only if you sell, that you pay 40% tax??

 

[frugal.rock]

For both. Am no expert though and I will be handing my mess over to an accountant soon so that the ATO can't bend me over a barrel from my blissful ignorance.

Generally, any profit overall from trading gives a capital gain, which may/will be taxed. (Capital gains tax CGT)
I just thought of if one was to buy a stock, which turned into a multibagger profit beast, can that stock holding be transferred to a SMSF and avoid any possible CGT from the gain?
Am full of questions myself!

 

[Warr87]

For both. Am no expert though and I will be handing my mess over to an accountant soon so that the ATO can't bend me over a barrel from my blissful ignorance.

Generally, any profit overall from trading gives a capital gain, which may/will be taxed. (Capital gains tax CGT)
I just thought of if one was to buy a stock, which turned into a multibagger profit beast, can that stock holding be transferred to a SMSF and avoid any possible CGT from the gain?
Am full of questions myself!

not giving tax advice as i'm not qualified but from my experiences

profit from trading if held less than 12months would likely be considered income, no?

any transfer of an asset from you to another entity (whether thats a family trust, business, or presumably super) is considered a buy/sell evident. that is, it triggers CGT. you are effectively selling an asset from you to another entity. they wont let you get away with no paying tax on it. but if its to a SMSF, maybe you can consider it a post-tax contribution to your super?

 

[Sharkman]

Tax implications for super or stocks do you mean? Is it true that very cent you make on stocks, but only if you sell, that you pay 40% tax??

nope, not true at all. even if your marginal tax rate is 40%, you'd only pay that if you sold less than 12 months after buying and you have no offsetting capital losses. if held for over 12 months, it's generally halved:
https://www.ato.gov.au/General/Capi...ount-method-of-calculating-your-capital-gain/

the effective tax rate on dividends will often be less than your marginal rate as well for Aussie stocks. if you plan to invest in Aussie stocks and you weren't taking too much notice of the hullabaloo about it during the last election, one of the most important concepts you'll need to become very familiar with is how the dividend imputation system works.

 

[rnr]

For both. Am no expert though and I will be handing my mess over to an accountant soon so that the ATO can't bend me over a barrel from my blissful ignorance.

Generally, any profit overall from trading gives a capital gain, which may/will be taxed. (Capital gains tax CGT)
I just thought of if one was to buy a stock, which turned into a multibagger profit beast, can that stock holding be transferred to a SMSF and avoid any possible CGT from the gain?
Am full of questions myself!

Hi @frugal.rock,

Just a couple of comments that come to mind regarding your post.

Do not treat this response, under any circumstances, as advice but more like some points to ponder.

1. The act of trading would imply that in buying an item you do so with the intention of selling said item at a profit and hence that would be a trading profit.
2. Buying shares for the purpose (say) of providing a dividend stream over future years (i.e. not with intention of selling the shares to provide an income) then it would not be unreasonable to conclude that any profit made from the disposal of a share holding, resulting in a capital gain or loss would be subject to tax law governing CGT events.

It is worth remembering that our tax system in Australia is based on self assessment.

Cheers,
Rob

 

[Muckman]

Hey all just found this site thought I’d ask a few things that I had on my mind.

Looking at investing into Rolls-Royce. Should I use plus 500 or something else?

 

[TraderJimmy]

Hi everyone, been lurking here for a few weeks - reading the phenomenal amount of material. I have not traded shares directly before, but have always been drawn to it.

My plan is to research and learn, specifically systematic trading approaches. I have a background in software development and like the methodolical approach, so I think it will work well for me, but we'll see.

I'd like to then papertrade one or two methods that appeal to my personality and stage in life / risk appetite. Following that, I will trade the system that has ticked as many boxes as possible.

Cheers

 

[Joe Blow]

Welcome @Muckman and @TraderJimmy!

I'm glad you have both found our community and are finding it useful so far. There is a wealth of information and knowledge contained in the thousands threads here at ASF and I am sure you will enjoy exploring it.

If you have any questions about how things work here, please don't hesitate to ask. And don't be afraid to jump right into any discussions that you are following or are interested in. Everyone here is encouraged to participate and ask questions or share their views with others.

 

[Skate]

Hi everyone, been lurking here for a few weeks - reading the phenomenal amount of material. I have not traded shares directly before, but have always been drawn to it. My plan is to research and learn, specifically systematic trading approaches. I have a background in software development and like the methodolical approach, so I think it will work well for me, but we'll see. I'd like to then papertrade one or two methods that appeal to my personality and stage in life / risk appetite. Following that, I will trade the system that has ticked as many boxes as possible. Cheers

@TraderJimmy welcome to the forum.

The "Dump it here" thread
After reading your introductory post I'm convinced the "Dump it here" thread could be what you are looking for.

Research & learn
https://www.aussiestockforums.com/posts/1005967/

Systematic trading
https://www.aussiestockforums.com/posts/1012854/

Paper trading
https://www.aussiestockforums.com/posts/1086074/

Free eBook - Trading Fundamentals - Skate's Beginners Version eBook
https://www.aussiestockforums.com/posts/1014728/

Skate.

 

[TraderJimmy]

Thansk @Skate I've definitely spent a fair bit of time in Dump it Here...but hadn't found all those links yet.

 

[tinhat]

For both. Am no expert though and I will be handing my mess over to an accountant soon so that the ATO can't bend me over a barrel from my blissful ignorance.

Generally, any profit overall from trading gives a capital gain, which may/will be taxed. (Capital gains tax CGT)
I just thought of if one was to buy a stock, which turned into a multibagger profit beast, can that stock holding be transferred to a SMSF and avoid any possible CGT from the gain?
Am full of questions myself!

You are not allowed to make contributions into a SMSF through an off-market share transfer anymore. You could do it once upon a time but I guess it was open to rorting.

 

[itlllastlonger]

Hey guys,

First post here, 30 years old, always been curious about trading stocks. I jumped in like a lot of others during the March ‘sale’ when I found myself with a lot of free time.

Now I’ve come here hoping to refocus and ground myself a little. The past six months have been a bit of a blur, I made some good plays and some bad ones but overall I probably rushed into a lot of exposure. I think a bit of discipline could help me out a lot.

Looking forward to looking around here, I’m also thinking of writing down some of my experiences and asking for some help. Is the best place to go the ‘Dump it Here’ thread?

Thanks all.

 

[Skate]

Hey guys, First post here, 30 years old, always been curious about trading stocks. I jumped in like a lot of others during the March ‘sale’ when I found myself with a lot of free time. Now I’ve come here hoping to refocus and ground myself a little. The past six months have been a bit of a blur, I made some good plays and some bad ones but overall I probably rushed into a lot of exposure. I think a bit of discipline could help me out a lot. Looking forward to looking around here, I’m also thinking of writing down some of my experiences and asking for some help. Is the best place to go the ‘Dump it Here’ thread? Thanks all.

@itlllastlonger welcome to the forum.

The "Dump it here" thread
After reading your introductory post I'm convinced the "Dump it here" thread is the best thread to start with. I've covered most topics that new members should find of interest. The "Dump it here thread" is an educational thread steering you in the direction of being a profitable trader. All my posts have been written in such a way to encourage you to read another.

Help is at hand
New members join our community looking to learn how to trade or invest successfully. I know there are many members who are willing to help you with this. Make the search feature your friend, use it to get answers quickly.

Listen to everyone & read only the post that interest you
From my experience, it pays to listen to everyone & then you decide if it’s relevant or helpful to you. You get to decide what to keep & what to discard. If you don’t listen to the advice you'll forgo the right to learn. Education is the key when it comes to trading. As the saying goes, if what you learn leads to knowledge, you become a fool - but if what you learn leads to action, you can become wealthy. In the meantime check out my educational thread. Overconfidence, lack of attention to details & excessive trust in the judgments of others can bring you undone quick smart in this game.

The “Dump it here” thread
If you read a few of my posts I’m sure you’ll want to keep reading a few more
https://www.aussiestockforums.com/posts/1005967/

Enjoy looking around
If a thread interests you, read it slowly, don't fall into the trap of "speed reading" as it doesn't give you time to fully understand the post let alone the time to memorise all the important stuff. Also, don't rush the learning process, your financial future may depend on it.

My free eBook
My free beginner's eBook in the ePub format "Trading Fundamentals - Skate's Beginners Version eBook" is the first book you should to read. I've condensed what I found value in my trading journey & can be found here: https://www.aussiestockforums.com/posts/1014728/

Skate.