hi guys, i have 5-10k AUD that i want to put away into a vanguard fund. i will not need to be able liquidate the investment early. which one do i pick? i only have access to aus ones and im looking to make the biggest return, though not necessarily very quickly (i can afford to wait for at least 5 years)
18 months in and I'm down about 7%
I have funds in high yield aust, balanced, conservative, diversified bonds, hedged international, high growth, property securities
The only 1 'up' is bonds
i see, and thats the one with the lowest return naturally
have you any experience with the etfs? they seem to be doing better but i dont want to jump onto that if the us is about to go into recession or something
High yield Aust & high growth are both down about 20% no shit - so I'm tempted to dump everything into them in anticipation of a comeback in the next year
But the safe bet is a NAB iSaver paying 2.7% or diversified bonds if you must Vanguard
Well my advice is yes, keep it in Westpac or loan it to your parents if they still have a mortgage so they can put it in an offset account and you can negotiate with them for a 4% return
I sunk $100k into my mum's offset account and saved her a bunch in interest but didn't ask for anything in return - considering I pay the top tax bracket on my interest earned, 3% is really 1.8% which is only $1800 per year - whereas I can save my mum around $5k in interest payments and win 'son of the year' award
I have 100k in savings account earning 3% = $3k
I pay 37% income tax on that $3k
So I really only earn about $2k
If I put that $100k in a mortgage offset account, it reduces my mum's mortgage by $100k
If her mortgage rate is 5.5% that saves her $5.5k in interest payments for the year
What's better - me earning $2k or my mum saving $5.5k?
Yeah, offset account you can get the money back instantly. Paying out the mortgage could attract economic penalty and mortgage may not have redraw facility - and even if so, may charge a fee to get your money back.
I earn about $100k-$130k p/y and spend about $30k
Do that for 6 years and see what's in your bank act.
I'd loan more money to more people, I just don't trust anyone else.
e.g. If I loaned my brother $200k, his wife would rack up $200k more debt and I'd never get my money back
I wish it wasn't the case because all up I could be saving family around $20k p/y instead of earning less than $6k after tax - or only about $3k this year after vanguard losses
Love seeing Aus-relevant threads on this board.
All things being equal, if you had 100k now, would you be sinking it into the high yield ETF? We may not be at the bottom of the ASX, but surely we're getting close.
Im eyeing off NAB and SUN atm, thinking they look awful cheap for what should be pretty solid.
Anyone with experience in the stock market, who feels they can contribute is invited to join our live group chatroom.
This think tank can make us all a lot of money.
Create a user name
Post it here, along with your level of experience
Yeah, I'll bite.
Invested about $12k into vanguard Aus Share Index funds, it's sitting at about $10.6k.
It's the lowest it's ever been, but it's the greatest difference I've ever experienced. Some days have more value than what I invested, others have less.
Imo I wouldn't wait till we hit the bottom - it's pretty hard to determine when exactly that will be.
There's unlikely to be a huge difference in capital gains when you sell out of the fund - the biggest contributor to this is time spent in the fund and cash input/dividend reinvestments.