Opinions on my beginning strategy

[whatsmyusername]

Hi all,
I'm about to start dabbling in shares, particularly ETFs from Vanguard.
I am completely new to this and haven't held shares before but I have read a little bit, with that in mind please excuse my ignorance on things and please correct me if I misunderstand some things.
I'm at a stage in my life where I have some extra cash - not a lot - to start investing. For some background; I'm pretty risk averse and would like to start having some cash in a place rather than a bank where I don't earn any interest.
I'm aiming to retire in about 15-20 years and I believe investing can help me reach that. I won't be able to take my super if I do retire then though. I am currently in a defined benefit superannuation place as well (if that makes a difference).

I've heard good things about Vanguard ETFs in that they are pretty much set and forget with low fees. I understand that I can just BPAY money into these.
My plan is to purchase a small amount of a couple of ETFs and contribute to them a few times a year. I'm not interested in taking dividends and am happy to re-invest those (if i get them).

I'm thinking of getting
VGS
VGB

Does anyone have any opinion on this - I'm happy to hear all feedback, especially if it helps me understand more
Thanks

 

[rederob]

Hi all,
I'm about to start dabbling in shares, particularly ETFs from Vanguard.
I am completely new to this and haven't held shares before but I have read a little bit, with that in mind please excuse my ignorance on things and please correct me if I misunderstand some things.
I'm at a stage in my life where I have some extra cash - not a lot - to start investing. For some background; I'm pretty risk averse and would like to start having some cash in a place rather than a bank where I don't earn any interest.
I'm aiming to retire in about 15-20 years and I believe investing can help me reach that. I won't be able to take my super if I do retire then though. I am currently in a defined benefit superannuation place as well (if that makes a difference).

I've heard good things about Vanguard ETFs in that they are pretty much set and forget with low fees. I understand that I can just BPAY money into these.
My plan is to purchase a small amount of a couple of ETFs and contribute to them a few times a year. I'm not interested in taking dividends and am happy to re-invest those (if i get them).

I'm thinking of getting
VGS
VGB

Does anyone have any opinion on this - I'm happy to hear all feedback, especially if it helps me understand more
Thanks

You previously started a thread under another nic and received some advice.

 

[Dona Ferentes]

must be the work experience guy from Vanguard, trying to stimulate business. Sophisticated, though; didn't call himself a newbie.

 

[whatsmyusername]

You previously started a thread under another nic and received some advice.

must be the work experience guy from Vanguard, trying to stimulate business. Sophisticated, though; didn't call himself a newbie.

Ok....so this is interesting.

I definitely haven't posted here before and I definitely do not work for Vanguard. I'm sure the mods can lookup IP addresses and registration email addresses.

I was after some help but it seems like this forum isn't the place for it

 

[rederob]

Ok....so this is interesting.

I definitely haven't posted here before and I definitely do not work for Vanguard. I'm sure the mods can lookup IP addresses and registration email addresses.

I was after some help but it seems like this forum isn't the place for it

There was a poster with very similar circumstances and questions earlier this year - so link here to get that same feedback.

 

[whatsmyusername]

There was a poster with very similar circumstances and questions earlier this year - so link here to get that same feedback.

Thank you, I appreciate it. While there are some similarities, that poster is in a lot better position than me and looking to invest multitudes more than myself.

I'm trying to toss up trying to up my % into super to max out my super pension amount versus investing that money into ETFs. I figure ETFs are better because I can access the money if I need it rather than waiting for my super to kick in. It's also possible I won't be able to contribute to my defined benefit super for the next 15-20 years and have to have a new super account.
My mortgage is still open but being covered by the equivalent amount in offset, I'm not in a rush to close the mortgage as I like the buffer in case of emergency.

Thanks again for the link, seems to confirm my plan isn't totally stupid.

 

[rederob]

Thank you, I appreciate it. While there are some similarities, that poster is in a lot better position than me and looking to invest multitudes more than myself.

I'm trying to toss up trying to up my % into super to max out my super pension amount versus investing that money into ETFs. I figure ETFs are better because I can access the money if I need it rather than waiting for my super to kick in. It's also possible I won't be able to contribute to my defined benefit super for the next 15-20 years and have to have a new super account.
My mortgage is still open but being covered by the equivalent amount in offset, I'm not in a rush to close the mortgage as I like the buffer in case of emergency.

Thanks again for the link, seems to confirm my plan isn't totally stupid.

There are many more options to consider than just ETFs, and in that field there are lots as well!
I suggest you look over the many thread titles at ASF to get a flavour of what they are.
For all "newbies" the Dump it Here thread should be compulsory reading.
Best of luck.

 

[cutz]

Does anyone have any opinion on this - I'm happy to hear all feedback, especially if it helps me understand more
Thanks

Personally I'm not a huge fan of ETF's, ASX listed ones haven't got Exchange Traded Options available.

Just thought I mention this because in the future you may consider writing calls to enhance your buy and hold strategy.

 

[Beaches]

I've heard good things about Vanguard ETFs in that they are pretty much set and forget ...

There is nothing wrong with ETF's, especially for a new investor. However, I have always considered 'Set and Forget' to be one of the biggest mistakes made by investors. No investment is set and forget. You will pay a high price over time for just setting and forgetting. Putting time into learning more and monitoring your investments will always increase your returns over the long term.

 

[systematic]

Hi all,
I'm about to start dabbling in shares, particularly ETFs from Vanguard.
I am completely new to this and haven't held shares before but I have read a little bit, with that in mind please excuse my ignorance on things and please correct me if I misunderstand some things.
I'm at a stage in my life where I have some extra cash - not a lot - to start investing. For some background; I'm pretty risk averse and would like to start having some cash in a place rather than a bank where I don't earn any interest.
I'm aiming to retire in about 15-20 years and I believe investing can help me reach that. I won't be able to take my super if I do retire then though. I am currently in a defined benefit superannuation place as well (if that makes a difference).

I've heard good things about Vanguard ETFs in that they are pretty much set and forget with low fees. I understand that I can just BPAY money into these.
My plan is to purchase a small amount of a couple of ETFs and contribute to them a few times a year. I'm not interested in taking dividends and am happy to re-invest those (if i get them).

I'm thinking of getting
VGS
VGB

Does anyone have any opinion on this - I'm happy to hear all feedback, especially if it helps me understand more
Thanks

Firstly, welcome to the forum (sorry about some of the strange replies you've received!)

Sorry for brevity in my reply, but it's that or not reply at all. Couple quick thoughts from your post:

- Yes, Vanguard are good, and low fees.

- Set and forget is to do with strategy not the vehicle (fund/ETF). Meaning, just because it's a Vanguard (or any other) ETF or fund...does not mean 'set and forget'

- Check into managed funds as well. Vanguard have equivalent of their ETF. You said you want to contribute several times a year. Check into which would work better for you (ETF vs fund). They are the vehicle and one might be a little better for you. You can BPAY very little into the funds, and you mentioned that, so look into them

- For set and forget, I have been pointing (on this forum and in personal life) in the direction of Vanguard life strategy (high growth) fund. Or similar from another provider (although I like Vanguard). Why? Because it actually does what many are trying to achieve with set and forget. It's going to rebalance for you, and give you what a person new to all this (as you said of yourself) needs: an agnostic portfolio (i.e. a bit of everything). Equity heavy (of course)...all over the world. Minimum investment in the retail fund is 5k with BPAY deposits of $100 permitted.
You can then figure out who you are as an investor (and how granular you want to go with it all) from there.

Best of luck with it all!

 

[Value Collector]

Hi all,
I'm about to start dabbling in shares, particularly ETFs from Vanguard.
I am completely new to this and haven't held shares before but I have read a little bit, with that in mind please excuse my ignorance on things and please correct me if I misunderstand some things.
I'm at a stage in my life where I have some extra cash - not a lot - to start investing. For some background; I'm pretty risk averse and would like to start having some cash in a place rather than a bank where I don't earn any interest.
I'm aiming to retire in about 15-20 years and I believe investing can help me reach that. I won't be able to take my super if I do retire then though. I am currently in a defined benefit superannuation place as well (if that makes a difference).

I've heard good things about Vanguard ETFs in that they are pretty much set and forget with low fees. I understand that I can just BPAY money into these.
My plan is to purchase a small amount of a couple of ETFs and contribute to them a few times a year. I'm not interested in taking dividends and am happy to re-invest those (if i get them).

I'm thinking of getting
VGS
VGB

Does anyone have any opinion on this - I'm happy to hear all feedback, especially if it helps me understand more
Thanks

Sounds like a good plan to me.

I think a ETF that covers a very broad based selection of shares from Australia and around the globe would be a good place to start.

 

[Iggy_Pop]

From my experience, ETFs are a good start and going international as you are doing is a sound idea. My other experience is to look at some of the Aus hybrid shares as well as bonds. I have found US market providing the best return with ETFs and in reality they include Apple, Amazon, Google, Microsoft etc which are international companies. The other thing to consider is international ETFs will have a with-holding tax on dividends of 15%. Australian ETFs or LICs such as AFI will give you franking credits which contributes to the overall return. This is the reason many suggest a diversified portfolio as different approaches will give better returns than others.

Iggy