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Vanguard ETFs for dividends
- Thread starter gretrust
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I am in retirement and have a smsf, so it may not be agressive enough for you, but I have MLT,AFI,VAS & VAP.
Like I said I am in retirement and lean toward dividend, so it may not suit everyone.
I akso have individual shares and shares outside super, so as I say it is an individual thing, there is no one size fits all.
With respect what on earth have you been doing for two years with those funds? Dabbling or dithering?
Granted you may not have had any prior financial knowledge before coming into some money but by now if you have learnt little in those two years, which seems to be the case if you are asking such basic questions, I suspect it could be beyond you. If what I glean from those two quotes is true I'm not overly confident about the results you will or hope to achieve.
I wish you all the best naturally but if you have remained uninformed on investing issues for such a long period...........
Knobby22
Mmmmmm 2nd breakfast
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Are you in an industry super fund?
They have advisors now.
I would arrange a meeting.
If not, consider switching.
If you are retiring in the not too distant future you need good untainted advice.
They have advisors now.
I would arrange a meeting.
If not, consider switching.
If you are retiring in the not too distant future you need good untainted advice.
A quick search of the OP's posts reveal on 8 July 2019 said there was an advisor involved. Said it again on 29 December 2019 and also in that post wanted to retire in 3 to 5 years.
And still asking fundamental questions?
I'll allow others to work out what is happening by the seemingly continual asking but apparent inaction but it is clear to me it is something is very, very odd.
Have worked with people of a similar mindset so it's familiar territory.
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I've just been a little bit lost.
Yes I have had an advisor. i still do. I invested 50% of money in December 2018 only to take it all out again in April 2019 because my advisor was suggesting the market will drop. He is still suggesting it will drop, so here I am a little concerned to invest. But in the meantime the market has had a record year and I have lost money by doing nothing.
So here I am again taking matters into my own hands and trying to make sure I don't do anything 'wrong'.
I have started to invest in VDHG and now want to build a basic portfolio of ETFs and LICS and slowly DCA through 2020. As I do this I am just asking questions to make sure I'm still on the right track of research.
My problem which I can't do anything about is that REALLY I need an aggressive strategy but I cant see this happening on my own.
I have $1.2m to invest and I'm keen to retire and want to make sure I don't make big mistakes. I don't have years in front of me to make up for mistakes..
Sorry if I am driving some of you nuts.
-Frank
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I asked about which ETFs and LIC's some of you are invested in so that I could look at the asset allocation and use this as a form of education.. To see how they are balanced,
For example there is no point in me investing in VAS and IOZ and STW. By looking at a few portfolio setups I can see for example 'ah, so this guy has invested 30% AUS index, 20% Global Index 30% AUS Industrials and 20% Small Caps, this is interesting',
I was hoping that example portfolios by the members on here I find to be a helpful tool, it gives me the confidence that I understand it.
Look at LICs and ETFS as ingredients to a pizza. I know what all these ingredients do and how they work but if I can see a whole pizza completed I can make sure I know how to make it properly.
-Frank
First mistake I consider is you have done little.
Any super? if not, second mistake.
Mistake three looking at the portfolio of others.
Mistake four dissing something as simple as VAS. Since July 2018 it has paid me $6.38 per unit in distributions. Work out how much that would have paid you if you bought then at around $80 each. To save you the trouble it would have been some $90k. No idea what the price is now. Irrelevant.
Mistake five aggressive. Take the funds you have, hand it over to your advisor and instruct them to place it all on black at the nearest casino.
Mistake six associated with the above. You don't have the time left to be aggressive if you wish to retire in some five years.
My mistake. Reading and responding.
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I didn't diss VAS. , I own 'VAS' as part of VDHG anyway. I think my comment was out of context.
I was giving an example on how its good for educational reasons to see what others are doing and I was using education in the sense that if someone doesn't know what they are doing that they may invest in VAS, IOZ and STW , in the contest that they all very similar if not the same.
Fair enough thats a good point.
I think I know enough to not invest in anything 'wrong' but not enough to invest into anything that will get me to where I need to be. I need a financial advisor looking over my shoulder.
-Frank
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It sounds like your are after a sure fire guarantee, to not lose money in the share market, there isn't one.
If a FA knew how to make money and not lose money, he wouldn't be working, he would be traveling the World on his mega yacht.
There is risk investing in anything, there is even risk having your money in the bank, if you are really that scared of losing it, spend it and enjoy it, buy a house, go and travel.
It might be worth taking a teaspoon of cement before you retire, because the worry is a lot worse then. Lol
Same feeling here. Have dealt with so many of the same attitude over the years I no longer have any patience with the approach.
The OP would probably do themselves a favour and get as much as they can in super, place the rest in VDHG and be done with it.
VDHG
Vanguard Australian Shares Index Fund (Wholesale) 35.6%
Vanguard International Shares Index Fund (Wholesale) 26.5%
Vanguard International Shares Index Fund (Hedged) - AUD Class (Wholesale) 16.2%
Vanguard Global Aggregate Bond Index Fund (Hedged) 7.1%
Vanguard International Small Companies Index Fund (Wholesale) 6.5%
Vanguard Emerging Markets Shares Index Fund (Wholesale) 5.1%
Vanguard Australian Fixed Interest Index Fund (Wholesale) 3.0%
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Not at all.
I have read a few books, Peter Thornhill's Motivated Money is one of them. The Barefoot Investor is one I am reading at the moment, I do understand there is risk and I'm not after any guarantee and I am very comfortable with the share market once I actually know what to buy.
All I am trying to do is create a very simple portfolio of maybe 3 or 4 funds, that I can just set and forget. But one where it aims to grow a little more than the normal market average. The average market return seems to be 4% I wanted to aim a little higher than this and take on a little more risk.
I can't understand why I'm finding it so hard to do this or to find an advisor who will just do it for me. They all want to give me a complex stupid portfolio that they have to manage and make work for themselves..
-Frank
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How do you mean 'dealt' as in communicating in forums or are you in the finance industry?
Funny you should say that because I am seriously considering this as well as maybe a few industrial LICs and then just go and drive Uber and talk to people about the weather all day.
-Frank
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Frankie ,
knowing what OP invested in is useless unless you know why they invested in them.
knowing what OP invested in is useless unless you know why they invested in them.
Did a little digging and it must be my dark side as I'm a bit suss about this dude.
First post was in April 2014 asking about buying shares when having a mortgage. Then nothing until mid-2019. States read Barefoot Investor, Peter Thornhill both of which contain sufficient information which should encourage someone who is actually interested to have a look around. Indicates there is a FA involved. I've no idea to what extent or whether there is an intention to change FA if unhappy with the adviser. All the posts seem to be only asking questions on what they should do and very little else (wanting someone here to hold hand and to make the decisions? As if that is going to happen!) No input of any actual plan, no nothing of a concrete nature.
No idea of what is really behind it all and now I'm not interested any further in finding out.
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this is a very big mistake IMHO - if you are close to retirement and don't have room for error, you should not be taking on more risk and trying to beat the market!
even equity index funds (which will by definition return slightly less than the market due to MER) may be too much of a risk for you, as there is always the chance that the whole market could fall significantly (eg. GFC).
i personally am staying 90-100% in equities even though i'm also planning on retiring in 2-3 years, because i'm mitigating that risk by targeting a 2.5% drawdown, and i do have years in front of me if even that isn't enough protection (i'm 40).
i don't know what your situation is. FWIW i think VDHG is probably a fairly solid choice that should work well for you, but if not having years in front of you is that much of a concern, i'd be more inclined to go for one of the more conservative horses from that stable, like a VDBA for eg.
of course they do. most of the time (but not always, i'm sure there are a few good guys out there) they're mainly out there to make money for themselves and their institution. not for their clients. if their clients happen to make some money along the way, well that's a nice side effect, but it's not their main priority. were you following the royal commission?
they make the most money for themselves not when their clients make money, but when their clients frequently transact (or they frequently transact on behalf of their clients) incurring commission, and when they sign their clients up to products that they can get kickbacks from.
you mentioned that you bought into the market in dec 2018 (one lot of commission) only to pull it all out again a few months later based on some "advice" (copping another lot of commissions). were those at typical online commission rates (~0.1%) or typical "broker assisted" commission rates (1-2%)? this is classic advisor tactics right there, recommend a whole bunch of transactions, ringing up a pile of commissions in the process, realising little to no benefit for the customer.
i can only speak for myself, but i suspect the predominant view around here is one of skepticism and cynicism towards the advice industry. most of us here prefer to manage our funds ourselves, learn as much from each other as we can, and apply some critical thinking to our own portfolios after taking on board the views of others. instead of throwing all of our decision making to an advisor and hoping that it all works out.
if you want some examples read thru Zaxon's retirement asset allocation thread. i've described my portfolio there along with the reasoning behind my decisions, and quite a few other people have done the same as well.
https://www.aussiestockforums.com/threads/whats-your-retirement-asset-allocation-percentages.34989/
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Awesome stuff Sharkman. Well said and finally explains the truth about the majority of Financial Advisors out there.
How are you able to limit your downside to 2.5% if you are fully invested ?
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i've probably used the wrong terminology there out of habit, due to reading and talking a lot about the FIRE movement. perhaps i should have used the term withdrawal rate to make this clearer, as drawdown is sometimes substituted for that in the context of FIRE.
i meant that i'm planning for my annual expenses to be around 2.5% of my portfolio value at the time of retirement, rather than achieving a maximum peak to trough of only 2.5% - which i agree would be very difficult to do when fully invested. as this is significantly lower than the widely touted safe withdrawal rate of 4%, it allows for a sizable drawdown in the traditional sense, hence why i'm comfortable remaining fully invested even though i expect to be retiring in 2-3 years myself.
i just mentioned that mainly as a caution to Frankieplus that my approach may not necessarily suit him, as i got the impression from his posts that he's looking to find out what other people are doing in order to possibly copy their portfolios, so i wanted to try and encourage him to think thru his own situation first.
You have made a valid and good point but it may be it is deeper than that. I have no wish for the gentleman to end up in the mire. My fear is he may not fully recognise he probably does not have the necessary ability and should just outsource the lot.
If no super bite the bullet and put as much as possible into super as soon as possible. A low cost conservative fund after consulting his FA. They are run by professionals, which Frank isn't, whose job it is to manage money and Frank certainly gives me the impression he isn't very good at it (two years of apparently dithering about is one indication of that, looking at share trading when never done before. A host of indications.)
For the rest of the funds stop merely considering, as he seems to tend to do which is another form of dithering, put the money with the other dosh he has in VDHY and get on with it.
He is running out of time if he wants to retire in five or so years time. He will never get that time back. The result may not be his "dream" however that's just how it's going to be. It doesn't take much imagination as to what is the actual result is going to be if he doesn't do it now.
I understand my view may seem cruel. However if somebody is fortunate enough to come into money it is cruel to themselves to waste it and that is what is happening.
