What would you do if you were me?

[DocK]

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?

Psailagroup, If i were you I'd clear the home loan first - if it's your principle place of residence the interest you're paying, although meagre, is non-deductible - so you'd need to be achieving pre-tax investment returns of a few % above what you're paying on your mortgage to be ahead. At your age I certainly wouldn't be "putting all my eggs in one basket" by investing all your savings into the sharemarket. You've plenty of time to build a passive income, and property investment is also an option that may be worthy of consideration at some point in time. Having liquid funds will give you options should you wish to diversify in the future.

 

[Calliope]

+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.

Your response is the smart a*se one. If you have better advice for him - let's hear it. Slovenliness in posting equates to slovenliness in investing. Perhaps psail is not ready to take the plunge into the unknown,and should not be encouraged.

PS. I see you agree with me.

 

[Calliope]

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

It's more than you've contributed. Psail couldn't make head nor tail of your offering.

 

[pixel]

+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.

+2
... and thanks, Mods, for quickly correcting an obvious typo in the title

psailagroup, welcome to arguably the best place to get some useful answers; that aside, you are to be congratulated for getting this far at an early age.

Without knowing more about your likes and ambitions, it's hard to make a really good suggestion. I was quite a bit older when I was in a similar enviable position. I bought an old place in an up-and-coming suburb, did it up to live in it, and, when I found better work elsewhere, I rented it out.
Problem One: The tenants - or rather: their boyfriends - wrecked the front garden within months; as my new workplace was a thousand miles away, I had to pay an agent, whose only comment was "but they're paying the rent on time." Bottom line, rent vs loss in value: about break-even.
In the end, I sold it - admittedly still at a tidy profit, but that was mainly the result of our own hard work put into renovatiions when it was our PPoR.

After the Crash of 1987, I bought into a few good stocks - IPOs and Mining; after our return to Perth, we could then buy a bigger place without any mortgage, but still had money left to invest in shares and fixed interest. At the end of 2000, I could afford to "resign" and become a full-time trader. Mind you, that meant primarily that I swapped working for an old idiot ("the Boss") for a new idiot (myself); but instead of spending 2-3 hours a day commuting on the freeway, my way to the office is now a short 5m walk. And in spite of frequent cause, there was never any threat of sexual harassment claims from the tea lady, secretary, or assistant supervisor :

 

[skc]

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

Who here on this forum can beat that?

CanOz

Surprised no one responded to the above.

 

[Joules MM1]

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

Surprised no one responded to the above.

you include yourself, naturally

 

[Joules MM1]

lulz

This message is hidden because Xxxxxxx is on your ignore list

jeez......wonder who that could be.....

 

[psailagroup]

+2
... and thanks, Mods, for quickly correcting an obvious typo in the title

psailagroup, welcome to arguably the best place to get some useful answers; that aside, you are to be congratulated for getting this far at an early age.

Without knowing more about your likes and ambitions, it's hard to make a really good suggestion. I was quite a bit older when I was in a similar enviable position. I bought an old place in an up-and-coming suburb, did it up to live in it, and, when I found better work elsewhere, I rented it out.
Problem One: The tenants - or rather: their boyfriends - wrecked the front garden within months; as my new workplace was a thousand miles away, I had to pay an agent, whose only comment was "but they're paying the rent on time." Bottom line, rent vs loss in value: about break-even.
In the end, I sold it - admittedly still at a tidy profit, but that was mainly the result of our own hard work put into renovatiions when it was our PPoR.

After the Crash of 1987, I bought into a few good stocks - IPOs and Mining; after our return to Perth, we could then buy a bigger place without any mortgage, but still had money left to invest in shares and fixed interest. At the end of 2000, I could afford to "resign" and become a full-time trader. Mind you, that meant primarily that I swapped working for an old idiot ("the Boss") for a new idiot (myself); but instead of spending 2-3 hours a day commuting on the freeway, my way to the office is now a short 5m walk. And in spite of frequent cause, there was never any threat of sexual harassment claims from the tea lady, secretary, or assistant supervisor :

Hi Pixel,
I had to download Firefox this morning to get this site working properly. For some reason this site kept on crashing with internet explorer.

I honestly love keeping busy and working, We own a Tattslotto store in Melbourne and I also work as state sales manager for a shipping company. My wife was working as a drafter but she lost her job in NOV. Our goal is to create a solid finical future by the age of 35. I love investing for two reasons, 1) If done properly it can provide solid income or capital and 2) If you have a passion for investing, it can become your career.

thanks
JP

 

[pixel]

Hi Pixel,
I had to download Firefox this morning to get this site working properly. For some reason this site kept on crashing with internet explorer.

I honestly love keeping busy and working, We own a Tattslotto store in Melbourne and I also work as state sales manager for a shipping company. My wife was working as a drafter but she lost her job in NOV. Our goal is to create a solid finical future by the age of 35. I love investing for two reasons, 1) If done properly it can provide solid income or capital and 2) If you have a passion for investing, it can become your career.

thanks
JP

Hi JP.
Now THAT sounds so familiar

My wife was also working in an Architect's bureau, till she lost her drafting job to a computer.
After a few quick calculations, we found that she should become the family "Investor" with a growing share portfolio in her name and dividends taxed at a much lower than my own marginal rate.

Tell you what: Some women have a knack to pick the right time too. While I was still working "for de Man", I would usually crank up the PC before I hit the freeway; watchlists all set up, targets discussed; then she would ring the Broker (no onliners in those days) when the time seemed right.

On one occasion, I had calculated a top of $3.05 and told her to sell at that price if it looked like forming a top. In the evening, she "confessed" to have been disobedient: Her gut feeling had been it might fall short, so she rang the sell order through for $3.02. Not only was that t he High of the day (and week and month...), but the blessed thing closed at $2.96 and a few weeks later ended its life far below our IPO price ($1) and was delisted.

I thought I mention that, in case your Good Lady finds some time and enjoyment to give it a go as well.

 

[DocK]

I thought I mention that, in case your Good Lady finds some time and enjoyment to give it a go as well.

http://www.telegraph.co.uk/women/womens-business/9690599/Boys-will-be-boys-Why-women-make-better-traders-than-men.html

'Boys will be boys': Why women make better traders than men
When a trading website recently declared that women make better traders than men, ex-Rothschild banker Emma Sinclair dismissed it as a wild claim. That is, until, a wealth of research convinced her otherwise.

The release listed five possible reasons why women generally do better at financial spread betting, those being:

- Men hate to be wrong and take longer to admit that they have made an error;

- Women are better in a crisis and less emotional because, contrary to popular belief, female traders are more disciplined and less likely to panic;
- Women can more easily say no and sometimes the best trades are the ones you do not make;

- Women read the manual, stick to a strategy and question things that they are uncertain of; and,

- finally, women are measured as opposed to jumping in head first - which men are apparently prone to doing.

http://www.traderplanet.com/articles/view/162236-why-women-make-better-traders/

Why Women Make Better Traders ......
You need only Google using these keywords "why women make better traders" to find many other experts and large financial publishers writing about the same thing. I am not alone.

So I would like to propose a toast, please join me in raising a glass to women in the markets.
Congratulations ladies, you can indeed trade, and in fact, you are the better trader.

Food for thought?

 

[matty77]

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

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.

100% agree with this post - if that is all you are paying then pay the bloody thing off, yes there are some tax advantages but seriously pay it off ASAP and use the spare cash to invest.

???

 

[psailagroup]

Thanks every one!!!

 

[Calliope]

Thanks every one!!!

I would like to apologise to you Johann for trying to lecture you. You obviously have a strong work ethic and will probably succeed at anything you try.

Good luck.

 

[Julia]

I would like to apologise to you Johann for trying to lecture you. You obviously have a strong work ethic and will probably succeed at anything you try.

Good luck.

Ah, a happy ending.
Just when I was thinking you were rehearsing for the cast of "Grumpy Old Men", Calliope.

To the OP, well done on achieving what you have at your age and on remaining polite in this thread.
Impressive.

 

[pixel]

Ah, a happy ending.
Just when I was thinking you were rehearsing for the cast of "Grumpy Old Men", Calliope.

To the OP, well done on achieving what you have at your age and on remaining polite in this thread.
Impressive.

+1 on both counts