I've been contemplating getting into shares for a long time. I've managed to accumulated a substantial amount of money in my bank account (about $60K). It's sitting there in a high interest savings account giving me a steady income. I normally top it up every week with savings from my earnings, so money has grown steadily over the years. I'm quite young and still living at home, so don't have many expenses I'm currently studying at uni and have several part time jobs.
Primarily I started to save in order to buy a house. I will move out soon and a huge chunk of my savings will disappear
I thought about investing about $20K in shares and leave the rest in my savings account. Still a little bit worried I might loose all my money, despite reading countless articles and books saying the average trend of the market is up! And diversifying the portfolio is key.
I recently applied for a commsec account and will try it out with maybe $1000 and see how I go. I would like to make regular income through the shares, so not looking for compound growth at the moment. Maybe go for shares that pay dividends.
I have three questions that I haven't been able to find answers to:
- Will I receive a monthly income, like I do with my saving account?
- What is the expected return?
- What are the costs involved: tax, brokerage with commsec etc?
I know these questions are difficult to answer and depends on shares I invest in and the amount of risk I'm willing to take. I'm just after a rough estimate and need to understand how my money will perform.
I saw commsec offered these "share packs" I will probably buy one of those. I still have so much to learn and any help will be appreciated.