Newbie Lessons - All your questions answered

[JaZLee]

Hi awesome thread, thanks for the lessons Sir Osisofliver

Some great insights of how the banks work and loans.

I'm in the process of sorting out a budget for the first time ever and building
a plan to make my $ grow.

Been saving 10% for awhile now, time to figure
out how best to make the dollars work for me.

I really enjoy reading about Warren Buffet and how he simplifies what appears to be complicated, will most likely go for value investing to start with

Looking forward to the next chapter

Cheers
Jason Lee

 

[outbackjack]

Listed Investments Companies

Hi there,

I have two holdings in my big share portfolio.

I have NAB and AFI(Australian Foundation Investment Company Limited).

About 8k in total and just been approved for new marginal loan for 40K. So about to get more shares.

I am not asking your advice only your opinion on LIC`s? For a complete green skin like me are they a good thing? Or should a newbie buying the shares direct?

Cheers

 

[Josho1]

Hello all,

I am fairly new to the "Trading Game".. Firstly im just wanting to know where most of you get your information from, any good tips to know, any trading programs that may be better then most. Really anything that will make ma a successful investor, i relies i will not get rich over night and it will take a while to get into the right state of mind. with saving money haha.. ive probably have a million questions but they will have to wait..


thanks
Josh

 

[korrupt_1]

Direct Reinvestment Plans....

I've always signed up for cash payouts, but decided to do a DRP on one of them..

So here's an example... I would have got paid $100 cash of dividends if elected for a payout, but instead I elected for a DRP. The stock price is, say at the time of the ex-div date, is $60... so what happens to the remaining $40? Does it mean I only get 1 additional share in the stock and the rest is a cash payout of $40?

Or does it get rounded up? and I end up with additional 2 shares?

Or does it just disappears and it's my bad luck?

 

[prawn_86]

Or does it just disappears and it's my bad luck?

As far as im aware its rounded down and bad luck you should be happy with the discount.

 

[korrupt_1]

As far as im aware its rounded down and bad luck you should be happy with the discount.

so... if the stock price at ex-div is $100... but you only have $99 of divy... you get NO DRP and NO Cash? it just doesn't make sense...

 

[prawn_86]

so... if the stock price at ex-div is $100... but you only have $99 of divy... you get NO DRP and NO Cash? it just doesn't make sense...

Again im not 100% sure, but i think it is in the fine print of the DRP. I recall looking it up a couple years ago. Perhaps it is on the ASX website?

 

[beamstas]

Stock Price $60
Div $100

You get 1 share and a $40 credit next time around

If the SP next time is $70 and the div is $100

You'll have $100 (div) + $40 (unused DRP last time) = $140 worth of DRP
Shares Rec'd = $140/$70 = 2

Regards
Brad

 

[prawn_86]

Well that sure makes me look like a douche

 

[ROE]

I really enjoy reading about Warren Buffet and how he simplifies what appears to be complicated, will most likely go for value investing to start with

Looking forward to the next chapter

Cheers
Jason Lee

Buying stock is easy
work out what stock to buy and at what price is the hard part
and it harder when people jump ship and you buy and it keep going down.

What do you do? buy more or join the crew and commit capital punishment

 

[jono1887]

Stock Price $60
Div $100

You get 1 share and a $40 credit next time around

If the SP next time is $70 and the div is $100

You'll have $100 (div) + $40 (unused DRP last time) = $140 worth of DRP
Shares Rec'd = $140/$70 = 2

Regards
Brad

so essentially, the company gets to hold that remaining $40 until next year, whilst you just wait?

 

[korrupt_1]

Stock Price $60
Div $100

You get 1 share and a $40 credit next time around

If the SP next time is $70 and the div is $100

You'll have $100 (div) + $40 (unused DRP last time) = $140 worth of DRP
Shares Rec'd = $140/$70 = 2

Regards
Brad

thanks brad... that makes a lot of sense to me now...

and as jono1887 rightly said above... they get to keep the $40 in their pockets? :/

 

[Cink]

Hi,

as an international student and dipping my feet around in the shares market recently, what kind of taxes am i looking at with the profits i make (if any?)

Thanks

 

[pedrod]

Hi,

as an international student and dipping my feet around in the shares market recently, what kind of taxes am i looking at with the profits i make (if any?)

Thanks

I would not bother worring of the tax until you have the profit.

 

[Cink]

I would not bother worring of the tax until you have the profit.

ok, i have the profit now :newbie::newbie:

 

[Krusty the Klown]

ok, i have the profit now :newbie::newbie:

You will have to declare your capital gain (profit) in the capital gains section of your Aussie tax return if you are classed as a resident for tax purposes. If not declare it on your tax return in your country of origin.

You will also have to declare any gains on currency exchange as a capital gain.

You can offset any capital gains with any capital losses.

If you are trading in Australia, you really should see a tax adviser for advice on your individual circumstances - particularly as you are from OS - and that is where it will get tricky.

 

[Cink]

Thanks Krusty, will do just that.

 

[johenmo]

Buying stock is easy
work out what stock to buy and at what price is the hard part
and it harder when people jump ship and you buy and it keep going down.

What do you do? buy more or join the crew and commit capital punishment

A lot of opinion here is dollar averaging down is not a good financial management plan. Sounds fine to me. If it keeps going down then shorting may be an option. What about your stop loss?

 

[Harleyquin]

We were with storm financial and have lost most assets and all cash. How and where do we start again. Can't trust a financial planner or accountant. Any tips for starting small and starting again.

 

[white_crane]

We were with storm financial and have lost most assets and all cash. How and where do we start again. Can't trust a financial planner or accountant. Any tips for starting small and starting again.

Save, save, save! And have a budget, so you know exactly where every cent is going. Then work out ways to cut down on your spending. The basic equation is spend less than you earn. Set up a direct debit so that part of your earnings are automatically banked into a savings account. You won't miss it!

High interest savings account etc - things with less risk, until you start to get your confidence back. Then maybe move on to investments with a bit more risk later on.

Also, how did you get to where you were before you lost everything? There might be a lesson in that.