I'm new to the forum and investing in stocks. I've done a fair bit of reading and been to a financial adviser (who actually didnt charge me). I proposed a way forward for investing my capital and he said there wasn't much more he could do for me other than propose the correct asset allocation. So i'm attempting to go it alone and see how I go.
As a long term investor (i'm looking at min 5 years but likely this will form the basis of my investments until retirement). I have tossed up between ETF's and a Vanguard indexed fund. I've ultimately decided to go with the ETF's due to lower fee's and more investment options. As a result of this decision, i've decided to only reinvest every six months or quarterly in order to reduce brokerage costs. I will keep my money in a high interest account until ready to invest.
I'm 31 years old with a pretty reasonable income and intend on investing $100,000 initially.
My intended investment mix is:
VGB (Vanguard Aussie Bonds): 10%
VAS/VHY (Vanguard Aussie shares or Aussie high yield - either one): 40%
VGE (Emerging Markets): 10%
VGS (International markets): 40%
I had a couple of questions regarding the initial investment. I was planning on averaging in my capital in $10,000 increments each month across all asset classes due to the low dollar and relative strength of these markets at the moment.
I've also read in some instances going for a hedged ETF such as VGAD (International index hedged) may be of benefit due to the fact our dollar is likely to rise in the future?
Just wanted to run this past some people before I went ahead in order to get some advise or have someone pick out glaring holes that I cant see at the moment.
Appreciate any thoughts on this asset allocation!