What would you do if you were me?

[psailagroup]

Hi all,
This is my very first post on this site and so glad that I have found it as well.
I am 28 from Melbourne and we have almost paid off our first home, Rather than paying off the home I would like to invest in shares to create an extra income, Our short term goal is to achieve a 4K per year income from shares where the money would be used for extra cash flow to invest. Our yearly repayments for our home loan is 4K so this would be a good first goal.

I need some sort of direction or help to achieve this goal:
1) If we have 1K to 3K in spare cash per month, how much would you invest in the share market on a monthly basis to achieve our goal?
2) I have been trading for the last two years and have done well, but what I have been doing is this, once i make / saved 10K from shares i would use this money to pay our home loan. Would you continue this strategy or would you do it a different way.
3) The ASX market is a great but i understand that the market has so much money invested from SUPER and because so many people have so called experts handling their super do you think that this has pushed prices above what they should really be? Also when things turn bad they seem to just sell all of their shares which in turn drag the market down too.
4) How has the share market improved your life?

 

[prawn_86]

Re: What would you do if you where me!!!

Once you have traded/invested for a few years you would want to be able to out-perform the index, otherwise you might as well just invest in an index fund. Or in your case the minimum return you need to beat is that of your interest rate on your mortgage.

Look at the returns of most fund managers and they are below 10% pa for the last few years, so do you think you will be better than those that do it full time? If so you will need 40k upwards to acheive your goal (probably a lot more for a beginner in my opinion)

There is a lot of useful info here on ASF so make sure you use the search function.

 

[So_Cynical]

Re: What would you do if you where me!!!

Our short term goal is to achieve a 4K per year income from shares where the money would be used for extra cash flow to invest.

1) If we have 1K to 3K in spare cash per month, how much would you invest in the share market on a monthly basis to achieve our goal?

Using my experience as a guide i think you will need between 30 to 60 thousand dollars to realise a 4K profit...totally dependant of course on just how successful you are with your share market activity's.

2) I have been trading for the last two years and have done well, but what I have been doing is this, once i make / saved 10K from shares i would use this money to pay our home loan. Would you continue this strategy or would you do it a different way.

Whatever you decide to do, you cant get around the fact that you need to own real estate to get access to cheap money.

3) The ASX market is a great but i understand that the market has so much money invested from SUPER and because so many people have so called experts handling their super do you think that this has pushed prices above what they should really be? Also when things turn bad they seem to just sell all of their shares which in turn drag the market down too.

The market will do as it does.. opportunities come and go.

4) How has the share market improved your life?

Due to my share market activity's my yearly income is now 21% higher and im looking forward to a very early (working for a boss/idiot) retirement.

 

[Vader]

Re: What would you do if you where me!!!

Our yearly repayments for our home loan is 4K so this would be a good first goal.

If your mortgage repayments are only $4k per year (~$333/m), then you must have a pretty small mortgage left - how long would it take you to pay it off if you put all your spare money into that? Once it's done, you'll have an extra $4k per year you can invest.

 

[CanOz]

Re: What would you do if you where me!!!

Hi all,
This is my very first post on this site and so glad that I have found it as well.
I am 28 from Melbourne and we have almost paid off our first home, Rather than paying off the home I would like to invest in shares to create an extra income, Our short term goal is to achieve a 4K per year income from shares where the money would be used for extra cash flow to invest. Our yearly repayments for our home loan is 4K so this would be a good first goal.

I need some sort of direction or help to achieve this goal:
1) If we have 1K to 3K in spare cash per month, how much would you invest in the share market on a monthly basis to achieve our goal?
2) I have been trading for the last two years and have done well, but what I have been doing is this, once i make / saved 10K from shares i would use this money to pay our home loan. Would you continue this strategy or would you do it a different way.
3) The ASX market is a great but i understand that the market has so much money invested from SUPER and because so many people have so called experts handling their super do you think that this has pushed prices above what they should really be? Also when things turn bad they seem to just sell all of their shares which in turn drag the market down too.
4) How has the share market improved your life?

Read this: Unholy Grails by Nick Radge

Trade this.....Modified 20% Flipper

50k / US Equities / 2007 - 2009

50k / US Equities / 2006 - 2008

S&P 500 during the same period...

Who here on this forum can beat that?

CanOz

 

[Calliope]

Re: What would you do if you where me!!!

What would you do if you where me!!!

I think you intended to title this thread:

"What would you do if you were me?"

For starters you could probably begin adult education classes and learn basic English grammar and spelling. Even at 28 it is not too late to learn.

 

[CanOz]

Re: What would you do if you where me!!!

What would you do if you where me!!!

I think you intended to title this thread:

"What would you do if you were me?"

For starters you could probably begin adult education classes and learn basic English grammar and spelling. Even at 28 it is not too late to learn.

While i understand your point i really don't understand what good can come out of making it on this thread. This is an internet forum, not a grammar contest. Aside from a few on here, no one really cares that the OP made a couple of mistakes...

CanOz

 

[Calliope]

Re: What would you do if you where me!!!

While i understand your point i really don't understand what good can come out of making it on this thread. This is an internet forum, not a grammar contest. Aside from a few on here, no one really cares that the OP made a couple of mistakes...

CanOz

You said;

"Aside from a few on here, no one really cares that the OP made a couple of mistakes..."

Maybe you don't, but psail is asking for advice on investment, and maybe his heading was just carelessness. But he will find that the stock market is very unforgiving of careless investors, as I'm sure you know. If psail has learned to be very careful when investing, then that is a more valuable lesson than your earlier advice to him.

 

[CanOz]

Re: What would you do if you where me!!!

You said;

If psail has learned to be very careful when investing, then that is a more valuable lesson than your earlier advice to him.

You don't get much more careful than learning to manage risk and applying statistical analysis to your momentum investing plan do you?

CanOz

 

[Calliope]

Re: What would you do if you where me!!!

You don't get much more careful than learning to manage risk and applying statistical analysis to your momentum investing plan do you?

CanOz

Is that what you were trying to get across? Well bugger me.

 

[CanOz]

Re: What would you do if you where me!!!

Is that what you were trying to get across? Well bugger me.

Sorry if you didn't get that part Calliope, perhaps my mistake. Plenty in the book about that, and if you looked at the charts carefully you would notice that risk was managed quite well through the GFC.

I'd be happy to elaborate if you like.

CanOz

 

[Bill M]

Hi all,
This is my very first post on this site and so glad that I have found it as well.

Welcome to ASF, I'm glad I found it too.

I am 28 from Melbourne and we have almost paid off our first home,

You are a true saver/investor, you have done really well to be where you are.

I need some sort of direction or help to achieve this goal:
1) If we have 1K to 3K in spare cash per month, how much would you invest in the share market on a monthly basis to achieve our goal?

IMHO, half. I would keep half in a cash emergency fund and devote the rest to stocks.

2) I have been trading for the last two years and have done well, but what I have been doing is this, once i make / saved 10K from shares i would use this money to pay our home loan. Would you continue this strategy or would you do it a different way.

You have done well to almost pay off your home loan. I personally would continue to do this until it is done and dusted, I hate owing money to anyone, but that's just me. Then once done I would concentrate on the stocks.

3) The ASX market is a great but i understand that the market has so much money invested from SUPER and because so many people have so called experts handling their super do you think that this has pushed prices above what they should really be? Also when things turn bad they seem to just sell all of their shares which in turn drag the market down too.

My opinion is that the market is not overvalued. As long as you can pull gross returns of 10% from some of our leading companies in dividends I do not think it is overvalued.

4) How has the share market improved your life?

I do not pay any tax at all, neither does my wife. We do not draw super so I will not include that. Basically, fully franked stocks that have a 30% imputation credit works in our favour. Now with the new tax free threshold of 18K per person per annum my wife and I actually get tax refunds. A lot of people underestimate how good fully franked dividends are. The more money I can salvage from tax the more my wife and I can spend on holidays and other luxuries.

Good luck with your investments.

 

[Calliope]

Re: What would you do if you where me!!!

I'd be happy to elaborate if you like.

CanOz

No thanks. It sounds boring, but if it helps psail, then good for you.

 

[psailagroup]

Hi every one,

Thank you all for your positive replies, I think for me
This forum is goin to help in many ways, talking and networking with like
Indeed people is important. I will start slowly and maybe use this strategy
For any left over cash from each month il invest 70% in the market and the remaining 30% into my offset acccount
Ps callIope maybe you should improve your attention detail skills
Its psaila not psail Naughty naughty

 

[CanOz]

Hi every one,

Thank you all for your positive replies, I think for me
This forum is goin to help in many ways, talking and networking with like
Indeed people is important. I will start slowly and maybe use this strategy
For any left over cash from each month il invest 70% in the market and the remaining 30% into my offset acccount
Ps callIope maybe you should improve your attention detail skills
Its psaila not psail Naughty naughty

You have no comments about momentum investing at all? I'm no vendor mate...you want to see the last twelve months walk forward?

CanOz

 

[psailagroup]

You have no comments about momentum investing at all? I'm no vendor mate...you want to see the last twelve months walk forward?

CanOz

Hi canoz
What do you mean by momentum investing, also can u forward anything in regards to the last twelve months ?

T

 

[CanOz]

Lets post the last twelve months...US Equities...50 k

You need to stick with this for 24 months minimum.

 

[Calliope]

Hi every one,

Thank you all for your positive replies, I think for me
This forum is goin to help in many ways, talking and networking with like
Indeed people is important. I will start slowly and maybe use this strategy
For any left over cash from each month il invest 70% in the market and the remaining 30% into my offset acccount
Ps callIope maybe you should improve your attention detail skills
Its psaila not psail Naughty naughty

I'm glad to see you took my advice psail, although with sentences like this;
"This forum is goin to help in many ways, talking and networking with like
Indeed people is important.", you still have a long way to go in the careless department.

Remember, carelessness and investing don't go together.

 

[CanOz]

I'm glad to see you took my advice psail, although with sentences like this;
"This forum is goin to help in many ways, talking and networking with like
Indeed people is important.", you still have a long way to go in the careless department.

Remember, carelessness and investing don't go together.

You really don't have more than this to contribute do you

 

[DocK]

You really don't have more than this to contribute do you

+1

I wouldn't be surprised if English were not the op's first language. Smart a#se responses like those from Calliope do absolutely nothing to encourage newbies to post. Poor form imo.