My strategy/plan going forward

[RbNEO]

Hi Everyone, so I've been getting back into investing and taking it seriously and was curious to get your thoughts on my rough investing strategy/plan going forward. I'm in my late 20s, planning for a standard retirement in my 60s. I'm primarily saving the money I have now for a house deposit as I want to move in but will save any additional money I have for my portfolio which I'll list below. My risk profile is medium to high, around 6-7/10 on a rating scale.-

Keep in mind, I plan to invest 15-20% of my monthly pay from work into my portfolio (dollar cost averaging). Let's pretend it's $1,000 per month for the sake of example.

This is what I was thinking of doing roughly (is subject to change):

Index funds/ETF/Individual stocks:

- Vanguard S&P 500 ETF (VOO)
- Vanguard FTSE Global All Cap Index Fund
- Ishares Core S&P/Asx 200 ETF ASX: IOZ (though I believe this overlaps with the S&P500 to some degree?
- 3-5 Individual stocks which I'll need to do proper research for (not thought out yet, the idea here was to gamble a bit but not spend more than I can afford to lose)

I would put 80% of my $1,000 allocation per month into this section ($800).

With that $800, 80% of it ($640) will go towards the 3 ETF's/index funds and the rest towards the individual stocks. This does dilute it quite a bit if I have 5 shares but would likely just have 1-3 individual shares to begin with.

The 20% left over ($200) would go towards the following:

- Bonds (I know there are different type of bonds, I need to refresh my memory a bit with this but was looking at doing mainly government bonds and corporate bonds)

- Reits (I'm not mentioning real estate on this post on purpose but I was looking at investing in this as part of my diversification strategy. I was looking at investing in 1-2 different reits as opposed to a REIT etf, though I'll need to do a bit more research on the individual stocks)


Other information:

- I'm not too worried about dividend payments on individual stocks as I view it as a bonus. (Let me know though if you feel like this is an important aspect for me to look into more)

- I will set aside 3-6 months of emergency funds

- In terms of the brokerage side of things I was looking at Stake and CMC for smaller purchases

- I'm sure I've forgotten something but that's all that's on my mind atm but keen to hear everyone's suggestions.

 

[Sean K]

Hi Everyone, so I've been getting back into investing and taking it seriously and was curious to get your thoughts on my rough investing strategy/plan going forward. I'm in my late 20s, planning for a standard retirement in my 60s. I'm primarily saving the money I have now for a house deposit as I want to move in but will save any additional money I have for my portfolio which I'll list below. My risk profile is medium to high, around 6-7/10 on a rating scale.-

Keep in mind, I plan to invest 15-20% of my monthly pay from work into my portfolio (dollar cost averaging). Let's pretend it's $1,000 per month for the sake of example.

This is what I was thinking of doing roughly (is subject to change):

Index funds/ETF/Individual stocks:

- Vanguard S&P 500 ETF (VOO)
- Vanguard FTSE Global All Cap Index Fund
- Ishares Core S&P/Asx 200 ETF ASX: IOZ (though I believe this overlaps with the S&P500 to some degree?
- 3-5 Individual stocks which I'll need to do proper research for (not thought out yet, the idea here was to gamble a bit but not spend more than I can afford to lose)

I would put 80% of my $1,000 allocation per month into this section ($800).

With that $800, 80% of it ($640) will go towards the 3 ETF's/index funds and the rest towards the individual stocks. This does dilute it quite a bit if I have 5 shares but would likely just have 1-3 individual shares to begin with.

The 20% left over ($200) would go towards the following:

- Bonds (I know there are different type of bonds, I need to refresh my memory a bit with this but was looking at doing mainly government bonds and corporate bonds)

- Reits (I'm not mentioning real estate on this post on purpose but I was looking at investing in this as part of my diversification strategy. I was looking at investing in 1-2 different reits as opposed to a REIT etf, though I'll need to do a bit more research on the individual stocks)


Other information:

- I'm not too worried about dividend payments on individual stocks as I view it as a bonus. (Let me know though if you feel like this is an important aspect for me to look into more)

- I will set aside 3-6 months of emergency funds

- In terms of the brokerage side of things I was looking at Stake and CMC for smaller purchases

- I'm sure I've forgotten something but that's all that's on my mind atm but keen to hear everyone's suggestions.

You've thought about this more than me. Good work.

 

[Dona Ferentes]

seems like you respect money. That's a start.

my only comment, others may disagree, is to not sign up for dividend reinvestment. Make each income decision a new one... and your accountant will love you.

 

[RbNEO]

seems like you respect money. That's a start.

my only comment, others may disagree, is to not sign up for dividend reinvestment. Make each income decision a new one... and your accountant will love you.

I completely forgot about dividend reinvestment, good call there! When you say "Make each income decision a new one" do you mean a new asset class or a new stock? In regards to accountants will they like it in the fact that the more complicated my portfolio is the more they will charge more to manage my tax return for example lol?

 

[Dona Ferentes]

I completely forgot about dividend reinvestment, good call there! When you say "Make each income decision a new one" do you mean a new asset class or a new stock? In regards to accountants will they like it in the fact that the more complicated my portfolio is the more they will charge more to manage my tax return for example lol?

no, not really. DRP is lazy thinking, each 6 months look afresh at what you want to invest in. circumstances and markets change.

Each asset purchase forms a new capital base. record keeping is a challenge. keep it simple

 

[RbNEO]

no, not really. DRP is lazy thinking, each 6 months look afresh at what you want to invest in. circumstances and markets change.

Each asset purchase forms a new capital base. record keeping is a challenge. keep it simple

Ah right, that makes sense. Thanks!

 

[rolly1]

Stick with Stake their $3 brokerage will be much friendlier on the bottom line with those smaller amounts of purchasing.

 

[Garpal Gumnut]

Hi Everyone, so I've been getting back into investing and taking it seriously and was curious to get your thoughts on my rough investing strategy/plan going forward. I'm in my late 20s, planning for a standard retirement in my 60s. I'm primarily saving the money I have now for a house deposit as I want to move in but will save any additional money I have for my portfolio which I'll list below. My risk profile is medium to high, around 6-7/10 on a rating scale.-

Keep in mind, I plan to invest 15-20% of my monthly pay from work into my portfolio (dollar cost averaging). Let's pretend it's $1,000 per month for the sake of example.

This is what I was thinking of doing roughly (is subject to change):

Index funds/ETF/Individual stocks:

- Vanguard S&P 500 ETF (VOO)
- Vanguard FTSE Global All Cap Index Fund
- Ishares Core S&P/Asx 200 ETF ASX: IOZ (though I believe this overlaps with the S&P500 to some degree?
- 3-5 Individual stocks which I'll need to do proper research for (not thought out yet, the idea here was to gamble a bit but not spend more than I can afford to lose)

I would put 80% of my $1,000 allocation per month into this section ($800).

With that $800, 80% of it ($640) will go towards the 3 ETF's/index funds and the rest towards the individual stocks. This does dilute it quite a bit if I have 5 shares but would likely just have 1-3 individual shares to begin with.

The 20% left over ($200) would go towards the following:

- Bonds (I know there are different type of bonds, I need to refresh my memory a bit with this but was looking at doing mainly government bonds and corporate bonds)

- Reits (I'm not mentioning real estate on this post on purpose but I was looking at investing in this as part of my diversification strategy. I was looking at investing in 1-2 different reits as opposed to a REIT etf, though I'll need to do a bit more research on the individual stocks)


Other information:

- I'm not too worried about dividend payments on individual stocks as I view it as a bonus. (Let me know though if you feel like this is an important aspect for me to look into more)

- I will set aside 3-6 months of emergency funds

- In terms of the brokerage side of things I was looking at Stake and CMC for smaller purchases

- I'm sure I've forgotten something but that's all that's on my mind atm but keen to hear everyone's suggestions.

This is very interesting. I was reading the other day that your generation is increasingly using ETF's as a means of entering the market as opposed to boomers who chose either stocks like CBA or BHP on the one hand or penny stocks in the mining and oil sector in our day.

I will follow your progress. All good decisions and ideas thus far.

gg

 

[tech/a]

no, not really. DRP is lazy thinking, each 6 months look afresh at what you want to invest in. circumstances and markets change.

Each asset purchase forms a new capital base. record keeping is a challenge. keep it simple

Some good comment.

In addition, this is a logically researched plan by you.
Results cannot be backtested so you will not know wether its
under or over-performing.
I think you should have some form of determination of the above.
which will bleed into the Highlighted comment from DF.

 

[Dona Ferentes]

. My risk profile is medium to high, around 6-7/10 on a rating scale.-

nearly everyone's is. It's designed that way.

i plan to invest 15-20% of my monthly pay from work into my portfolio (dollar cost averaging). Let's pretend it's $1,000 per month :

Index funds/ETF/Individual stocks:

- Vanguard S&P 500 ETF (VOO)
- Vanguard FTSE Global All Cap Index Fund
- Ishares Core S&P/Asx 200 ETF ASX: IOZ (though I believe this overlaps with the S&P500 to some degree?
- 3-5 Individual stocks which I'll need to do proper research for (not thought out yet, the idea here was to gamble a bit but not spend more than I can afford to lose)

VOO and Ftse Global would have overlap (?) ; not many ASX shares feature big in global indexes

I'd do international passive and try for more active locals. Broad market exposure shares I hold include SOL for top end and MIR for small caps ... but up to you

I would put 80% of my $1,000 allocation per month into this section ($800).

With that $800, 80% of it ($640) will go towards the 3 ETF's/index funds and the rest towards the individual stocks. This does dilute it quite a bit if I have 5 shares but would likely just have 1-3 individual shares to begin with.

these are small amounts. I'd do 1x internat exposure and one ASX @ $500 a month, then following month I'd do the other international and another ASX .

The 20% left over ($200) would go towards the following:

- Bonds (I know there are different type of bonds, I need to refresh my memory a bit with this but was looking at doing mainly government bonds and corporate bonds)

- Reits (I'm not mentioning real estate on this post on purpose but I was looking at investing in this as part of my diversification strategy. I was looking at investing in 1-2 different reits as opposed to a REIT etf, though I'll need to do a bit more research on the individual stocks)

bonds? why if you're holding 3-6 months cash
REITs. your home will be good exposure, and you'll be geared.

Other information:

- I'm not too worried about dividend payments on individual stocks as I view it as a bonus. (Let me know though if you feel like this is an important aspect for me to look into more)

don't let this be a distraction... main thing is to keep invested money silo'ed , and reinvest. And you'll discover franking credits. wonderful things

I will set aside 3-6 months of emergency funds.

ok

just my thoughts. No advice. I hold LICs but don't hold ETFs

 

[RbNEO]

nearly everyone's is. It's designed that way.

VOO and Ftse Global would have overlap (?) ; not many ASX shares feature big in global indexes

I'd do international passive and try for more active locals. Broad market exposure shares I hold include SOL for top end and MIR for small caps ... but up to you

these are small amounts. I'd do 1x internat exposure and one ASX @ $500 a month, then following month I'd do the other international and another ASX .

bonds? why if you're holding 3-6 months cash
REITs. your home will be good exposure, and you'll be geared.

don't let this be a distraction... main thing is to keep invested money silo'ed , and reinvest. And you'll discover franking credits. wonderful things

ok

just my thoughts. No advice. I hold LICs but don't hold ETFs

Thanks for your advice there much appreciated! It's gotten me thinking in terms of things I can do differently/improve on. With REITs it was more just of a diversification thing, but it's more on the lower priority of things on my list.

With my small monthly investment I might even have to consolidate initially towards the index funds, and leave individual shares out of it for now unless my income or monthly investment amount increases.

 

[dyna]

ETF's didn't exist when most people here , I think , started in this game .
These things have made investing so much easier with their great company diversity and spread of risk . A particularly good way to hold U.S. shares , I think . Shares in the land of Oz , on the other hand , will take up a lot more of your time . Franking credits loose a bit of their charm once you're out of the 30 % marginal tax bracket but , I don't fret too much about that , anymore .
Dividend Reinvestment ? Don't bother with it . Same with REIT's , although I do hold . You can teach yourself to become your own accountant , too . I'm always amazed that most Aussies think it's too complicated to do their own tax returns . If a dumb- arsed ex tradie like me can do it on his own , well anybody can ! It's tedious and time consuming , I'll admit , but the ATO website will teach you in plain english every damn thing you need to know about calculating profits , CGT ( Capital Gains Tax ) , Takeovers , Partial Takeovers or anything you can even think of , to do with shares and tax . I do a paper tax return with extra bits of paper with all my calculations attached , so my good buddies there , can see what I've done and hopefully not rope me in , for yet another friendly desk audit .
Hope it helps , cheers .

 

[Captain_Chaza]

I believe you should make as much Money as you enjoy Making and Avoid Jail at all times
This might be a bit above your Pay-Grade atm but The Good news is "The First 10 Years is the Worst"

I should know because I have lost 2 Ships and 1 Wife


Some even say "I am Addicted to the Sea"

 

[RbNEO]

ETF's didn't exist when most people here , I think , started in this game .
These things have made investing so much easier with their great company diversity and spread of risk . A particularly good way to hold U.S. shares , I think . Shares in the land of Oz , on the other hand , will take up a lot more of your time . Franking credits loose a bit of their charm once you're out of the 30 % marginal tax bracket but , I don't fret too much about that , anymore .
Dividend Reinvestment ? Don't bother with it . Same with REIT's , although I do hold . You can teach yourself to become your own accountant , too . I'm always amazed that most Aussies think it's too complicated to do their own tax returns . If a dumb- arsed ex tradie like me can do it on his own , well anybody can ! It's tedious and time consuming , I'll admit , but the ATO website will teach you in plain english every damn thing you need to know about calculating profits , CGT ( Capital Gains Tax ) , Takeovers , Partial Takeovers or anything you can even think of , to do with shares and tax . I do a paper tax return with extra bits of paper with all my calculations attached , so my good buddies there , can see what I've done and hopefully not rope me in , for yet another friendly desk audit .
Hope it helps , cheers .

Thanks for that, much appreciated!