Ive got $40k AUD just sat in a standard saver account and its time to put it to good use.
Im thinking a split between as "high" an interest saver account as i can find (currently AMP @2.6%) and opening a Vanguard account.
Does anyone recommended any of the current vanguard funds or ETFs?
In terms of risk/reward im open to anything 50/50. maybe even a bit more risk seeking.
Thanks in advance for any information/advice provided.
Honestly keep it in the saving account for now. We're heading towards a volatile time and your stocks could very well drop for the next year or two, better to get ~2.5% gains instead of aim for ~7% gains and end up losing money.
Why do people always leap to recommend large cap stocks? It's stupid advice and completely out of touch with modern market theory. Learn to type "VTI" instead ... its better advice and you won't sound retarded to adults.
>We're heading towards a volatile time and your stocks could very well drop for the next year or two
Holy fucking shit, we've got an honest-to-god fortune teller here! Or maybe a man from the future! Or someone completely full of shit and talking out his ass!
>better to get ~2.5% gains instead of aim for ~7% gains and end up losing money
People said that in 2009 too. And 2010. And 2012. And 2013. And 2014.
You were probably one of them, you poor miserable bastard.
How you want to invest has many factors
1. Minimum entry. Some funds have a minimum starting cost
2. Fees, since you are interested in Vanguard we don't need to worry about that too much, but the better admiral funds need 10k starting.
3. You shouldn't do 50/50 when you are young. More risk is necessary the younger you are but you can put off risk by playing to the larger portfolio blends.
4. Your "goal" is what is important. We can't begin without knowing what horizon you are aiming for. Do you want steady income without doing anything? Do you want to simply buy and hold stocks for 10+ years and reap the benefits?
A lot of people think investing 1000 dollars to 50k just means they can stop working for a living as soon as they do so, then panic and remove their money when the stock market dips.
I sit at the big boys table and honestly this is correct. A lot of people with a lot more money than me are selling off the majority of their assets, for the next few years in Australia, cash is king.
Thanks for all the replies!
It seems the overall sentiment of the thread is steering more towards just putting the cash away in a savings account?
More info on me :
23 years old, full time work $62.5k (AUD) p.a salary. Live with parents, weekly outgoings are $100 to them for board and that is it. The rest is pretty much saved.
So i have the means by which i can exploit my comfy situation and expose myself to some risk. However, there is always a catch.
I emigrated from the UK and so i need a visa (having parents here does not help because of my age), im currently in the application stage and the gov could choose to accept or reject me either tomorrow or in 12 months i have no idea. If accepted all is well, rejection gives me 3 weeks to leave the country and go support myself somewhere else.
Cant go wrong with banks in australia. The best tax exploitation vehicle on the planet.
Nor can you go wrong with a long term diversified investment.
Do your research.
Otherwise just jump on the property bandwagon. What ever the doomsayers say, australian property prices will always go up. If you get nervous just jack up the rent like everyone else does