How much of your savings are you comfortable investing?

[divs4ever]

i am already retired , so in the face of opportunity i tend NOT to back up the truck , but still may buy a comfortable amount , recognizing i may need some cash at a later date ( and the disability pension is only about $1,800 a month )

i am probably a little more cautious now than previous to 2016 , but am still buying small parcels as i see a fair deal

cheers

 

[Allan11]

Can I just point out

It only takes ONE greatly timed and well funded investement to be life changing.

AFTERPAY
Gold from $250 an ounce
short oil
Long DJIA or DAX
Housing an number of times.
AUD when it went to $1.10 from 50c
many stocks move 300-1000%

Yes you have to be in the right place at the right time
with enough capital to make a difference but it happens

OH and on early retirement. BORING AS BATSHITE I too work for
myself and although I could have retired 15 years ago am glad I have the challenge of business
particularly in theses times to sharpen my whits!

Ive said this before
you’ll make more money from LUCK than anything else.
look for on coming TRAINS load up and hop on .

(1) Most people can see opportunity
(2) Few know what to do when they see it.
(3) Very few DO ANYTHING

So get good at (1) (2) (3)

The more I put myself in front of PERCEIVED opportunity the luckier I get.

see my previous posts on investment management and RISK evaluation.

not sure if the "early retirement. BORING AS BATSHITE" was in response to the post?
When i refer to early retirement i only mean from work not from life. Everyone has a different view on life and most of the older people i have spoken to in the past 6 months whilst getting an idea of how much people live on, what sort of life they are having in retirement from work etc and the over whelming opinion is don't wait until you are too old to enjoy life, money, travel etc.

For me a nice 45ft Yacht sailing the Atlantic from the USA to Europe, Norway, and back down then across to the Carribean for 6 months a year until i am in the mid 60s and still have enough to have a good life back in Aus seems like a good way to spend the last 20 years of active life.

Everyone is different but i don't factor "luck" into any money decisions any more..

 

[divs4ever]

Everyone is different but i don't factor "luck" into any money decisions any more..

i DO , especially when well in front on an investment , such a philosophy worked well for me in OTE ( which became ISX ) i averaged down the price to 1.4c ( a new share ) took some profit on the way until i exited @ $1 , using the perception it LOOKED LIKE morphing into a neo-bank ( i seemed to have got that wrong but the timing was excellent )

i am retired whether i want to be or not without the pension the medical bills would be horrible

but i had a LOT of fun in the last 60 years , i can't grumble too much ( they haven't even tried to addict me to opiates yet )

but please feel encouraged to enjoy your retirement

cheers

 

[Value Collector]

As a relative newcomer to the markets, I was initially very cautious investing even a small amount into shares but now after six months watching it climb I'm kicking myself for not placing more in. I'm just investing in safe ETF's for the time being and have good cash sitting in a mortgage offset only making 2%. For the more experienced investors, do you feel safe putting all your money into stocks? Should I be doing this with the ETF's?

It all comes down to your personality and how emotionally stable you are.

If you look at owning shares as owning a part of a business, and you focus on buying into lots of different good businesses over time, and won’t get upset by the ups and downs in the market, I would say you could probably be 90% in shares.

but if you are likely to let greed and fear over take you, and end up buying in of selling out because of fear of loss or fear of missing out then I would say a smaller allocation probably better, and you should instead put you money into super where you can’t let your fear damage your portfolio.

 

[tech/a]

not sure if the "early retirement. BORING AS BATSHITE" was in response to the post?
When i refer to early retirement i only mean from work not from life. Everyone has a different view on life and most of the older people i have spoken to in the past 6 months whilst getting an idea of how much people live on, what sort of life they are having in retirement from work etc and the over whelming opinion is don't wait until you are too old to enjoy life, money, travel etc.

For me a nice 45ft Yacht sailing the Atlantic from the USA to Europe, Norway, and back down then across to the Carribean for 6 months a year until i am in the mid 60s and still have enough to have a good life back in Aus seems like a good way to spend the last 20 years of active life.

Everyone is different but i don't factor "luck" into any money decisions any more..

Like your thinking.

We have done and wish to do a lot of travel around this globe. Unfortunately we dont have friends who are able to partake in the same passion. I expect to be active well into my 80s. Still getting thrown around buy guys 1/2 my age (and pretty hard) in martial arts.

I dont factor in luck either but right place right time has served me very well in a great number of areas.

 

[bux2000]

I dont factor in luck either but right place right time has served me very well in a great number of areas.

You are so right .....Luck is what you make it and timing is everything.

bux

 

[divs4ever]

Lastly,you mentioned you will not need that money for a long time..can i buy your crystal ball?

are we going into a bidding war for it ??

my crystal ball needs replacing also

 

[Somestockguy]

It all comes down to your personality and how emotionally stable you are.

If you look at owning shares as owning a part of a business, and you focus on buying into lots of different good businesses over time, and won’t get upset by the ups and downs in the market, I would say you could probably be 90% in shares.

but if you are likely to let greed and fear over take you, and end up buying in of selling out because of fear of loss or fear of missing out then I would say a smaller allocation probably better, and you should instead put you money into super where you can’t let your fear damage your portfolio.

This resonates with me and really is a great answer. Thanks so much for chiming in.

Best regards

 

[divs4ever]

This resonates with me and really is a great answer. Thanks so much for chiming in.

Best regards

i would tweak Value Collector's thoughts , and suggest start to worry early , say , that stock rose 200% or 300% , wonder if taking SOME profit and let the rest of the holding find it's destiny , is a good idea

( i always worry when it seems so easy , and all is going so well , that does NOT mean panic-sell , but a hint of caution will reduce the chance of a loss but also your potential profit )

cheers

ALWAYS do what is best for YOU

 

[monkton]

This resonates with me and really is a great answer. Thanks so much for chiming in.

Best regards

Expanding on what @Value Collector said, as you've been buying the index then you are a part owner of 300 companies or 200 depending which index etf you have. If one or more of those goes broke it will be less than a 'blip' & will be replaced all without you having to be concerned with the decision making process.

 

[bux2000]

my crystal ball needs replacing also

I'm still looking for me marbles........

bux

 

[Belli]

Looking at the crash in 2008 (which was a shocker!) It took 5 years to come back to the previous level and start making a good return. Which must have felt like a lifetime for those invested.

It was a bloody great time. So many bargains to be had! I wish I had more cash to buy both personally and in the SMSF. Those buys are now churning out a goodly amount of income. Have you ever crunched the numbers based on the accumulation index? You may be surprised.

I don't trade only buy. Last sale was swapping STW (ASX 200) for VAS (ASX 300) shortly after it listed.

 

[tech/a]

It was a bloody great time. So many bargains to be had! I wish I had more cash to buy both personally and in the SMSF. Those buys are now churning out a goodly amount of income. Have you ever crunched the numbers based on the accumulation index? You may be surprised.

I don't trade only buy. Last sale was swapping STW (ASX 200) for VAS (ASX 300) shortly after it listed.

Belli

A few questions---I hope you dont mind?

Do you ever sell even a losing stock or dont you have any?
Is your universe of stocks limited to say the ASX 300?
Are dividend stock important to you.
Do you ever add to well performing stocks?
How many do you hold?
Its a good long term retirement strategy if you can start early enough to make a difference.

There are some great posts here with some good diverse opinions.

One long term idea I heard years ago was wait to have 100% increase then sell back your original investment amount and hold indefinitely.

 

[DaveTrade]

For the more experienced investors, do you feel safe putting all your money into stocks? Should I be doing this with the ETF's?

Hello Somestockguy, to be honest, you seem like you may have a bit to learn about identifying and managing the risk to which you may be exposing yourself, so it may be prudent to minimize your investment while you get yourself up to speed on aspects of risk and how to manage it. With investing and trading, on-the-job training can be very expensive.

Just looking out for you, stay safe.

 

[Belli]

Belli

A few questions---I hope you dont mind?

Do you ever sell even a losing stock or dont you have any?
Is your universe of stocks limited to say the ASX 300?
Are dividend stock important to you.
Do you ever add to well performing stocks?
How many do you hold?
Its a good long term retirement strategy if you can start early enough to make a difference.

There are some great posts here with some good diverse opinions.

One long term idea I heard years ago was wait to have 100% increase then sell back your original investment amount and hold indefinitely.

Apologies for not responding sooner @tech/a. Until now I didn't know you had asked for some information and only now saw your post.

I haven't tracked the price of my personal holdings for about ten years. I'm only interested in the dividends/distributions they spin off. The super fund is of course tracked as per the legislative requirements applicable to it.

My holdings consist only of LICs which are the 'older school' ones such as ARG, MIR, WHF, and the like as well as two ETF's (VAS & VGS). The split is approximately 60 Oz/40% International.

I add when I have surplus cash and try to keep the split around that.

I can only tell you what the SMSF has done really and using the FY 2019 year as a base (and only using rough as guts figures) it went down 5% in FY 2020 and increased by 32% in FY 2021. Under the present arrangements of the reduced mandatory asset-based pension payment I am applying 2.5% of the asset value. The income from my personal holdings is generally about 35% of total income (if the pension payment was 5%) so it's obviously higher at present.

Keep in mind though I have a very simple and quiet lifestyle which would not necessarily suit others. I have more than enough in the way of material possessions. I cannot envisage replacing those. I keep sufficient funds on hand to cover 12 months of expenditure plus a buffer just in case and because I can. However, as I view the SMSF as nothing but a big bucket of money, if I really needed say $100k or more, I'd use it but I honestly cannot think of what would occur for me to need that amount.

Hope that answers your question and I apologise for not responding sooner.

 

[tech/a]

Understood.
Your at a place of financial freedom
as you define it by the looks.