Vanguard ETFs for dividends

Dona Ferentes · 6 January 2020

aus_trader said:
In terms of risk rating, Government bonds are rated the safest as they are unlikely to defaucompanies. lt .....hen comes Corporate bonds such as those offered by banks ... but still investment grade.

It goes all the way down to 'Speculative' area or as the American's refer to as 'Junk Bonds', where the "Credit Default" risk increases the lower you go...

Sadly and unfairly, as a retail investor, Credit Agencies will not release the ratings for individual companies. (a good OTC broker will help clarify their research but can't technically hand it to you in print ).

Most solid long term corporates sit as investment grade at BBB or higher but very few make the cut to the A league. As alluded to by aus trader, governments have a way to meet obligations - it's called taxation !

And remember, anything labelled High Yield as a sub category is "non investment grade" & really just JUNK

"How did you go bankrupt?"
"Two ways. Gradually, then suddenly.”
― Ernest Hemingway, The Sun Also Rises

sptrawler · 6 January 2020

gretrust said:
Yes, that's good advice and I have considered that. To add to this HSBC are offering 2.35% for balances upto 1mil and Im going for that at the moment. I'll do some research on BONDS but wanted to check any specific picks by members here.

I just checked HSBC term deposit rates, they seem to max out at 1.35%:
https://www.hsbc.com.au/accounts/products/term-deposits/

What product are they offering 2.35% on? I wouldn't mind moving some money over.

Humid · 6 January 2020

https://www.judo.bank/
Not Hong Kong but an Asian flavour Homer

Belli · 6 January 2020

sptrawler said:
What product are they offering 2.35% on? I wouldn't mind moving some money over.

Alternatively save yourself any trouble hunting around and just buy more shares.

sptrawler · 6 January 2020

Humid said:
https://www.judo.bank/
Not Hong Kong but an Asian flavour Homer

I just looked at their SMSF term deposit page:
https://www.judo.bank/coming-soon

To be announced.

willoneau · 6 January 2020

sptrawler said:
I think that has a lot of merit, especially if you aren't interested in the franking credit, the price post dividend on a lot of occasions falls further than the dividend.
It would be worth tracking to ascertain which shares follow that trend. IMO
This plan would be helpfull, if you had a few capital losses, to write off against any gain.

I was thinking of ETF,s that you wanted to hold medium to long term, so just an idea if ETF was being held for dividends. Hadn't thought about the franking which would need to be included.

gretrust · 7 January 2020

sptrawler said:
I just checked HSBC term deposit rates, they seem to max out at 1.35%:
https://www.hsbc.com.au/accounts/products/term-deposits/

What product are they offering 2.35% on? I wouldn't mind moving some money over.

Serious saver. Initial 4 months.
https://www.hsbc.com.au/accounts/products/serious-saver/

gretrust · 7 January 2020

aus_trader said:
I think Dona Ferentes has covered a lot of the ground for you.

In terms of risk rating, Government bonds are rated the safest as they are unlikely to default, usually rated "AAA" or very close to it by the rating agencies such as Moody's and Standard & Poor's. How can they default if they can print their way out of any debt obligations ?

View attachment 99482

Yes that seems to be the general view and the reason why I have been looking at:

https://www.vanguardinvestments.com...ct.html#/fundDetail/etf/portId=8208/?overview

11% return in the last year and averages 5% for the last 3yrs, if Im reading it right.

Dona Ferentes · 7 January 2020

gretrust said:
Serious saver. Initial 4 months.
https://www.hsbc.com.au/accounts/products/serious-saver/

then it's not 2.35%pa. It's called a honeymoon rate, aka; 'come on down because investor psychology is once we have you, inertia will enable us to keep you'

your yield is 2.35% for 4 months and 1.35% for 8 months, or 1.72%pa.

InsvestoBoy · 7 January 2020

It's nice to want to help but I think @gretrust should talk to a qualified financial advisor and not take anything about investing off this thread.

A lot of the replies about bonds are well meaning but dangerous.

qldfrog · 7 January 2020

InsvestoBoy said:
It's nice to want to help but I think @gretrust should talk to a qualified financial advisor and not take anything about investing off this thread.

A lot of the replies about bonds are well meaning but dangerous.

True, based on the question, @gretrust has a lot to learn and wo knowing his her situation, our advices could be misguided.
Look for a FA or a friend with knowledge.my 2c

aus_trader · 8 January 2020

sptrawler · 8 January 2020

VC's rate setters seems just as good short term?

aus_trader · 8 January 2020

sptrawler said:
VC's rate setters seems just as good short term?

Yes, VC explained the details and broke down the risks and level of protection offered with the Provision Fund.

qldfrog · 8 January 2020

I

aus_trader said:
Yes, VC explained the details and broke down the risks and level of protection offered with the Provision Fund.

consider it as risky but not more than share market, you can get 6pc on dedicated green energy funds..basically solar panels etc where savings roi are higher then the loan rate, in theory relatively safe..as the saving on the power bill do pay the loan, not coke and bundy...
Anyway, ratesetter an option to add to your portfolio.
I also met the management and was not scared for what it is worth...
Disclaimer i have 25k with them

gretrust · 8 January 2020

Dona Ferentes said:
then it's not 2.35%pa. It's called a honeymoon rate, aka; 'come on down because investor psychology is once we have you, inertia will enable us to keep you'

your yield is 2.35% for 4 months and 1.35% for 8 months, or 1.72%pa.

Dont plan on staying with them after 4 months, will xfer back to rams for a consistent 2/2.1 that I ve been getting so far, subject to RBA announcing further cuts ofcourse.

As pointed out earlier Macq bank has 2.65 for 4 months with a 250k limit but i cant be bothered opening another account for 4 months.

gretrust · 15 January 2020

qldfrog said:
True, based on the question, @gretrust has a lot to learn and wo knowing his her situation, our advices could be misguided.
Look for a FA or a friend with knowledge.my 2c

I've thought about this from the 1 year that Ihave been visiting and reading Beginner threads here, especially the one someone started when he came into inheritance.

With the market full of so called proclaimed 'FA's & Property advisors' charging a 2 to 4 grand a year, how do you filter junk out?

Im sure there are a few really good FA's out there, but the chance of finding them via google is like finding a needle in a haystack. Which is where word of mouth or recommendations come in...
There's high chance that some of members have experience in dealing with a few.

Any recommendations on FAs from personal experience ?
Not sure if this deserves a thread of its own, but would definitely assist the community & beginners in shortlisting a few options.

sptrawler · 15 January 2020

gretrust said:
I've thought about this from the 1 year that Ihave been visiting and reading Beginner threads here, especially the one someone started when he came into inheritance.

With the market full of so called proclaimed 'FA's & Property advisors' charging a 2 to 4 grand a year, how do you filter junk out?

Im sure there are a few really good FA's out there, but the chance of finding them via google is like finding a needle in a haystack. Which is where word of mouth or recommendations come in...
There's high chance that some of members have experience in dealing with a few.

Any recommendations on FAs from personal experience ?
Not sure if this deserves a thread of its own, but would definitely assist the community & beginners in shortlisting a few options.

Generally the forum is made up of people who want to look after their own finances, so I'm not sure that there will be many giving advice, however there are some members who are financial planners and seem to have ethics so they may contact you.
But in reality, if you aren't confident in your own counsel, I would suggest you just buy top quality, low management cost, ETF's and LIC's and if you are in the building phase use dividend re investment.
Just my opinion. It is the safest path IMO

qldfrog · 16 January 2020

Not sure if it is just my experience but finding a decent accountant for my business took me 15y and the poor soul passed away within a year RIP,i inow got a decent one, and this should be easier than FA.
I have never met a FA i can trust, and gave up searching
Rationally, i made many mistakes and paying a few k a year for right advice would have been worthwhile, but finding the right oerson seems mission impossible
Part of the problem is you need a local contact, face to face interaction and this obviously greatly reduces the pool of prospects
So as many, you turn to asf and self education, or worse do nothing

gretrust · 16 January 2020

qldfrog said:
Not sure if it is just my experience but finding a decent accountant for my business took me 15y and the poor soul passed away within a year RIP,i inow got a decent one, and this should be easier than FA.
I have never met a FA i can trust, and gave up searching
Rationally, i made many mistakes and paying a few k a year for right advice would have been worthwhile, but finding the right oerson seems mission impossible
Part of the problem is you need a local contact, face to face interaction and this obviously greatly reduces the pool of prospects
So as many, you turn to asf and self education, or worse do nothing

Which is why I started this thread for Step 1 of beginner investment, for a safe, low risk-low return approach.

So true about finding decent accountants, after 5 years of crap personal accountants, I finally found a old soul who was as genuine as they come with letting you choose/customize risk. Sadly he's not v good at ETF/Bonds/LIC investment advice but awesome at personal taxes. I'll miss him when he's gone.

Vanguard ETFs for dividends

Dona Ferentes

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sptrawler

Humid

Belli

sptrawler

willoneau

gretrust

gretrust

Dona Ferentes

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InsvestoBoy

qldfrog

aus_trader

sptrawler

aus_trader

qldfrog

gretrust

gretrust

sptrawler

qldfrog

gretrust

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