I’ve been lurking here for a few months now. On the occasion of the All Ords dropping 3.5% today, I thought I’d ask the posters their opinion (I know no on here gives “advice” LOL) on my capital allocation as it stands. (I turned 30 a few months ago, if that makes much difference. I am single and live alone, renting, working full time.)
So here goes, as of today:
ARR (Arasor): $465.00
STW (SPDR S&P/ASX 200 Fund): $5,490.90
Fidelity China Fund: $10,017.77
Everyday Savings Account: $2,204.00
iSaver (high interest account): $5,000.00
Margin Lending (invested almost equally in MLC IncomeBuilder, MLC Properties Securities Fund, and Ausbil Australian Emerging Leaders Fund) – market value $49,490.05 - loan balance $33,066.20: $16,423.85
HFA Octane Global Fund (Capital Guaranteed Hedge Fund) – I paid the first $4,650 (interest and put option) on 50k loan for this at end of June; I must pay similar amount every year until the fund matures in 2015; I have no idea what the current value is so will assign a default amount: $4,650.00
PORTFOLIO WORTH (VERY APPROXIMATELY): $47,782.99
OR, MORE REALISTICALLY: 40K
(Excluded from above…I have excluded my old student debts – HELP and SFSS ($28,103.88 combined as of last reckoning). I have no intention of paying these off any earlier than tax requires as they only grow according to inflation and would be extinguished upon my death. Additionally this debt, I suppose, is partly compensated for by my superannuation, currently standing at at least $19,993.84 – maybe a bit more as I might have missed 1 or 2 when consolidating. I have no other debt than mentioned student debt (no credit card debt, home loan, car loan, personal loan etc.), apart from the leverage used in my margin loan and hedge fund described above.)
I see myself as basically a “buy and hold” type of guy. I was planning on taking out an E*TRADE margin loan on my STW holdings but the market seems way too jittery at the moment.
Having read quite a bit at this forum, I’d guess my outlook seems somewhat similar to Realist’s but I’m in awe of dudes like wayneL who can make a good living thru trading alone.
SO, what would you do next – at my age and with 40k capital? (GOD, THIS WENT LONG)