- 3 April 2021
I put some money into vanguard 😉 thanks everyone
Index fund is your recommendation?
Agreed, unless you have the time and willingness to bring a level of intensity and emotional stability that will allow you to beat the market consistently over time, Index fund ETF's are the way to go.Yeah,for the time poor and just about anybody else,for that matter,ETF's are the way to go.They survived the Covid crash and safely sailed through the GFC before that,so they're really here to stay now and the sector's value has just passed the $100 Billion milestone. Why pay a lot more for so-called active management that mostly can't even beat the index? Why even bother trawling through the market's share prices trying to do it yourself ?...... (I only do it for fun and to pretend I still have a proper job.)
Madoff was a fraudster. ETF's are not fraud.WOW!! The Holy Grail of investing and making out like a bandit...
Seems like one simply needs to hand over our funds to is 3x leveraged ETF and their clinical application of derivatives etc will ensure an onward march to prosperity.
I noted that their fund only began at the bottom of the 2008 crash looks very rosy to date.
I was also fascinated to see how they back dated their hypothetical returns to show how they could/would have make a bundle if they had been operating from the distant past. Interesting indeed.
It does seem like an alluring prospect. But i feel uneasy about the assumption that somehow all these trades will happen in the right way.
Just my thoughts.
The last person I remember who offered a guaranteed return on the stock market was Bernie Madoff . And he ceratinly had very respectable persuasive story.
Bernie Madoff: Who He Was, How His Ponzi Scheme WorkedBernie Madoff was an American financier who ran a multibillion-dollar Ponzi scheme that is considered the largest financial fraud of all time.www.investopedia.com
3 Triple-Leveraged ETFs, and Why You Shouldn't Buy Any of Them | The Motley FoolIt may sound like a good idea to multiply your investment dollars by three, but here's what you should know.www.fool.com
Well, Just because because a fund is traded on an exchange (eg ETF), doesn’t guarantee it will be free from fraud or is not going to make unwise investment choices or blow its self up with leverage.Madoff was a fraudster. ETF's are not fraud.
Exactly, but when you said "Madoff was a fraudster. ETF's are not fraud", it sounded like you were suggest that the ETF structure it's self was some sort of protection from fraud, but as you would probably know Fraud has brought down everything from Publicly traded companies to Bonds etc, so that sentence doesn't really make sense.Which is no different to saying that being a publicly traded company does not guarantee safety and you need to do your DD and check how it's audited etc etc.
At the end of the day Wall Street will sell you anything they think you will buy and they can earn a fee on.I wouldn't hesitate to buy an etf from any of the big names.
Huh???Seems we have another thread where you're keen to peacock and/or have an argument VC.
But that adds up to 120% ??? Also do you want to explain what each one is and why you recommend them?To be really simple, cheap, and set and forget for 10-20 years I would just dollar cost average 50% USSnP, 30% QQQ, 20% AX200, 20% Emerging.
Got to have more International than Australian.
Please don't explain, gunBut that adds up to 120% ??? Also do you want to explain what each one is and why you recommend them?
TT in your will is a great way to help out in the future. I agree !!No suggestions for you on where to invest the funds you have for your children but be aware of this
Children's share investmentsInformation about who is responsible for paying tax on dividends received from share investments made by or on behalf of children.www.ato.gov.au
The other matter, which is morbid I'm afraid, is if it hasn't already been done, see if the grandparents have established a Testamentary Trust via their Wills. Minors are taxed at adult rates and that can overcome the issue above. Can be a very powerful vehicle. Have known of cases where childrens uni accommodation and other matters have been funded in that manner.
Maybe good to consider to incorporate a TT in the Wills of both yourself and your wife.
On the flip side, have also known of situations where a Trustee (a relative of the primary beneficiaries) has ripped off the benficiaries, so if you go down that path chose the Trustee very carefully.
Sorry maths got messed up.But that adds up to 120% ??? Also do you want to explain what each one is and why you recommend them?
So I have 1200 in VAS which is a vanguard Australia index. I should also put some money into the international index also is what your saying?Sorry maths got messed up.
60% SnP - US is the largest market, briars, reserve currency, ‘democratic’, less risky than any detailed thematic ETF.
20% QQQ - Nasdaq, future technology growth.
10% Emerging - Population growth in Asia, higher return but higher risk than the above 2.
10% Oz - Local currency, but a Small focussed market, resources, banking, and Housing. Might even use this 10% for emerging instead but Oz resources over the long term with growing global population I guess you need to keep it in.
At the end of the day IMHO, a diversified Indexed International stock portfolio is best. The more focussed the more risk/return and one doesn’t know which sector (apart from probably US Tech) will do well long term, so the above would be for long term growth. There are hundreds of ETF’s out there. It’s horses for courses as to the percentages, but I would have International >Australian. At least they are the best long term asset category of all those possible. Set and forget. If one wants to be active then that opens a whole other dilemma.
All IMHO, DYOR, just trying to help.
Enough explanation Value Collector ?
Insurance Bonds I believe. Simply put, Kids are beneficiaries parent contributes, monthly (?). Day you start at age 3. 10 years contributions then ‘matures’. Beneficiary, kid, can then pay for school or Uni. Invested in what assets/funds the contributor decides, and what the bond offers. Internally taxed at Corp Tax rate, but at maturity no tax to beneficiaries. Contributions set at what the contributor wants at start (eg. $100 Pm), if you want to contribute more in say year 3, at $200pm, you have to stay at $200 for the Term, ie, if you increase the contribution you can’t reduce in the future. This is what I know from my studies, but may be 2 years out of date.G'day Ben and welcome.
Juz my worth.
Have you consulted a Financial Adviser?
Saving for your kids is a great idea, did that for both of mine, money matured when they turned 21. Both were life policies, can't remember the actual term but basically, invested monthly and covered them both if they should die.
From memory, payout was about 50% more than invested over the life of those plans.
Now, have you considered yourself in the picture?
What happens if you should pass from your mortal coil and can no longer contribute to your kids savings?
You say you're all new to this, hence my opening question about consulting a Financial Adviser, take up the offer of free first appointment. If nothing else, that consult will help crystallize your financial (any other) goals and objectives.
GL with it and long may you prosper.
I’m with you Dyna. 80% Index/thematic and rebalance every 6 or 12 months or at a reversal , then 10% play money ‘to try to pick winners and beat the market’, and 10% cash.Yeah,for the time poor and just about anybody else,for that matter,ETF's are the way to go.They survived the Covid crash and safely sailed through the GFC before that,so they're really here to stay now and the sector's value has just passed the $100 Billion milestone. Why pay a lot more for so-called active management that mostly can't even beat the index? Why even bother trawling through the market's share prices trying to do it yourself ?...... (I only do it for fun and to pretend I still have a proper job.)
Here’s the thing.So I have 1200 in VAS which is a vanguard Australia index. I should also put some money into the international index also is what your saying?
Correct. America's demographics are much better than everyone else in the first world and therefore a much better long term bet. You can invest into the S&P 500 index directly via the australian securities exchange with a leveraged ETF under the ticker of "GGUS".So I have 1200 in VAS which is a vanguard Australia index. I should also put some money into the international index also is what your saying?
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