First time investment income portfolio advice

[Some Guy]

Hi everyone,

This is my first post basically I am extremely new to investing, I have never invested in any form of shares, bonds etc. Recently I have been looking into the idea of investing and not just saving. I would like to build a basic income flow type portfolio, I have focused on ETFs. I'm looking for something with that is simple to maintain, I'm aiming to bye and hold for the long term. I have not really decided on how much I will put in stocks vs bonds yet, I have come up with two potential module portfolios for myself.

My key questions are:

• With my goal in mind what are your opinions of each of my module portfolios, would you add or change anything, do you have any different portfolio suggestions?
  
  
• What are people opinion on REITs? I am unsure if I want them in my portfolio or not, the vanguard index seems like a safer way to invest in them, & I like the income. Also adding in another asset class, Australian real estate seems like it would be good for diversification. However despite all of this, I feel fishy about including REITs in my portfolio.
  
  
• How much do people feel like a should have invested in international vs Australian equities, should I invest in international equities?
  
  
• Are international bonds recommended, also what are your opions on corporate investment grade bonds vs government ones?
  
  
• Bond to equities ration, discuss.

Portfolio One
Equity ETFs
SPDR S&P Global Dividend Fund (WDIV)
Vanguard Australian Shares High Yield Fund (VHY)

Bond ETFs
iShares Core Composite Bond (IAF)

or

Portfolio Two
Equity ETFs
SPDR S&P Global Dividend Fund (WDIV)
Vanguard Australian Shares High Yield Fund (VHY)
vanguard australian property securities index fund (VAP)

Bond ETFs
iShares Government Inflation (ILB)
iShares Core Global Corporate Bond (AUD Hedged) (IHCB)

 

[Bill M]

Hi Some Guy and welcome to the forum. I won't make any specific comments other than to look at these 2 ETF's as well.

RDV, is also a high yield ETF. The difference between VHY and this one is that they do hold REIT's in there too.

Also look at VAF for your Bonds ETF. Similar to IAF but less in management fees.

I hold both of the above and they give me steady income.

I don't hold any international ETF's. With WDIV I can't seem to get much info from my online broker. By that I mean I want to know exactly what they hold + exactly how much they paid in dividends over the last 12 Months. I put in WDIV and the announcements shows nil, what's that all about? Why isn't it all out there like the other ETF's?

Anyhow good luck, see you around.

 

[OmegaTrader]

Hi everyone,

This is my first post basically I am extremely new to investing, I have never invested in any form of shares, bonds etc. Recently I have been looking into the idea of investing and not just saving. I would like to build a basic income flow type portfolio, I have focused on ETFs. I'm looking for something with that is simple to maintain, I'm aiming to bye and hold for the long term. I have not really decided on how much I will put in stocks vs bonds yet, I have come up with two potential module portfolios for myself.

My key questions are:

• With my goal in mind what are your opinions of each of my module portfolios, would you add or change anything, do you have any different portfolio suggestions?
  
  
• What are people opinion on REITs? I am unsure if I want them in my portfolio or not, the vanguard index seems like a safer way to invest in them, & I like the income. Also adding in another asset class, Australian real estate seems like it would be good for diversification. However despite all of this, I feel fishy about including REITs in my portfolio.
  
  
• How much do people feel like a should have invested in international vs Australian equities, should I invest in international equities?
  
  
• Are international bonds recommended, also what are your opions on corporate investment grade bonds vs government ones?
  
  
• Bond to equities ration, discuss.

Portfolio One
Equity ETFs
SPDR S&P Global Dividend Fund (WDIV)
Vanguard Australian Shares High Yield Fund (VHY)

Bond ETFs
iShares Core Composite Bond (IAF)

or

Portfolio Two
Equity ETFs
SPDR S&P Global Dividend Fund (WDIV)
Vanguard Australian Shares High Yield Fund (VHY)
vanguard australian property securities index fund (VAP)

Bond ETFs
iShares Government Inflation (ILB)
iShares Core Global Corporate Bond (AUD Hedged) (IHCB)

Not advice do your own research

1) what is a "income flow type portfolio"?
-Why income?

2)Bond to equities ration
-As a rule of thumb more equities, more risk etc
-Are interest rates going to fall further? If not why use bonds and not cash in the bank?


3) international, corporate and gov bonds
-Are international interest rates going to fall further
-Currency fluctuations
-Why use Aus gov bonds if you can get more in the bank, which is psuedo-backed by the gov, unless
again interest rates going to fall further, in which case why not use fixed deposit
-Corporate bonds returns are specific/idiosyncratic to each company


4)International vs Australian equities
-Do the costs justify the gains
-currency fluctuations
-taxation differences/disadvantages

5) REIT/ managed funds
-Can be lower capital needed
-Do the fees justify the returns, compared to DIY investing?
-risk of mismanagement by REIT/fund, not being able to take money out etc


Do the research on returns in the past for yourself. See if you are comfortable with the volatility and finally a quote from the richest man of babylon

”What progress have you made since last I saw you?” "I have paid myself faithfully,' I replied, 'and my savings I have entrusted to Agger the shield maker, to buy bronze, and each fourth month he does pay me the rental.” "That is good. And what do you do with the rental?' "I do have a great feast with honey and fine wine and spiced cake. Also I have bought me a scarlet tunic. And some day I shall buy me a young ass upon which to ride.” To which Algamish laughed, “You do eat the children of your savings. Then how do you expect them to work for you? And how can they have children that will also work for you?

The point why eat the income unless you need the money or are retiring. In which case spend the kids inheritance!! The compounded re-investment returns can make a massive difference.

 

[OmegaTrader]

Hi Some Guy and welcome to the forum. I won't make any specific comments other than to look at these 2 ETF's as well.



I don't hold any international ETF's. With WDIV I can't seem to get much info from my online broker. By that I mean I want to know exactly what they hold + exactly how much they paid in dividends over the last 12 Months. I put in WDIV and the announcements shows nil, what's that all about? Why isn't it all out there like the other ETF's?

The power of google...

+ A PDS/ investor info should be somewhere on the web

http://etfs.morningstar.com/distribution?t=WDIV&region=usa&culture=en_US

 

[Smurf1976]

Firstly, welcome to ASF!

This is my opinion only but personally I am not at all keen on bonds at the moment.

Reason is simply that with interest rates so low the chance of further falls seems far less likely than the risk that rates go up.

And if interest rates go up, well then holding bonds isn't what you want to be doing since bond prices move inversely to rates (rates up = value of existing bonds goes down and vice versa).