Withdrawing from Stockmarket

If it makes you feel better, then just do it.

Worst case is you just have all of your money sitting in a bank account

Best case is the market crashes this year and you're golden

Also, FDIC is meaningless.

Buy some ETH

Personally yes I think you are being paranoid, depending on your time frame

If you are willing to hold for another decade don't worry about it.

If you need to withdraw at the end of the year then maybe reconsider.

Either way, why not hedge and do a little of both, take 500k and put it in cash or more secure investments, keep the rest in the market

>>1092901
This is pretty much my thinking. I'm only 28 as well, and have a strong income, so i'm not in a big rush.

I'm in Australia, and there's a $250,000 gov guarantee on bank deposits. I guess if it's meaningless in USA though, it's likely meaningless here too...

Suggestions?


>>1092902
Already got a little over 10,000 ETH


>>1092903
I completely understand this logic, however i hate the argument that;
>"the market has always recovered and been strong after a crash, so obviously its going to continue that way forever"

I think that's just naive, and based on how fucked the economy looks at the moment, i have some doubts that a major crash would recover in a similar way to the 2008 one.

Any suggestions on "more secure investments"?

>>1092893
How the fuck do you have a million dollars and this is a question you ask on a mongolian basket weaving imageboard?

>>1092914

I meant more secure than stocks, not cash deposits

eg bonds, p2p lending, real estate, certain precious metals

If I were you, I would just invest in BND or something that is safe but will still give non-trivial returns. At 28 years of age, you are already financially independent assuming you can tolerate a somewhat frugal lifestyle. At this point, I would switch my goals from growth to asset protection.

>>1092921
I made a very successful video game for mobile devices.
Not being poor is a pretty new phase in my life.

>>1092923
I've considered some gold, bad idea?

I feel like the Australian real estate bubble will burst if the economy crashes.

I have no knowledge on bonds or p2p lending. Could you fill me in a little?

>>1092931
What kind of returns would i expect on government bonds?

>>1092936

You should definitely divest from the ASX if that's where your holdings are, I think Australia is in store for decades of stagnation unless the resource sector rebounds

I just assumed you were in the US when you gave your portfolio value in USD

And you are correct about the Australian real estate market, double digit growth on the east coast is plainly unsustainable.

I don't know anything about the gold market, the precious metals I would go for are the rare earth metals they use in electronics

bonds are basically loans to governments that pay little interest but are very secure

p2p (peer-to-peer) lending is a new kind of investment where you kick money into a central business and they lend it out to individuals who need small loans (usually like 5-50k). It pays better then bank interest and most places guarantee your returns.

If I were you though I would keep like 250k in cash in Australia and put the rest in to a handful of ETFs in the US

>>1092936
The BND ETF gives returns of around 2.5% which is typical for US government bonds, but that ETF doesn't just have government bond holdings.

Where did you find banks that give you 2.5% interest on deposits? Most banks that give you returns that high have many catches such as a cap on the amount of money that qualifies for the high interest rate, required monthly deposits, and the like.

>>1092943
My portfolio is about 65% international, 35% Australian.

>>1092946
Australian banks give really high interest rates on deposits. I currently have accounts with about 5 banks, and am getting between 2.5-3% pa.

Some of them have 'catches' as you said, but all of them allow me to earn that interest on at least up to 250k. All of them require a monthly deposit too, but for the majority, that can be $1.

>>1092954
First off, well done. Good to see other Aussie Anons killing it.

I'm going to go against the grain and state that I think real estate is still a good investment in Aus. Yes, Sydney went through crazy growth and is now reach another stagnation point, but why not look at some of the outlying areas? Brisbane still holds some value, and real estate is pretty rock solid as long as you aren't investing in bumfuck nowhere or buying shit suburbs on fear (see: Blacktown).

Consider seeking the help of a buyers agent - yes it costs money, but its added to your capital costs for the purposes of capital gains if you ever sell.

Me, I'm looking at set and forget real estate. It can be sold whenever you want, and its not like properties are sitting on the market forever, particularly in more blue chip areas.

Subject to you being comfortable, which area of the east coast are you on? I'm more at home talking NSW than VIC or QLD, but have a little knowledge in each.

>>1092954
Oh and if you're cool with it, I'd be interested to see what stocks your holding in your portfolio.

>>1092893
Yes. Do this senpai. Buy high, sell low.

>>1092914

how'd you get 1m at 28 nigga

>>1092893
dude you are 28 with a million dollars, go read bogleheads or fucking something

Since the great depression at most we've seen rebound in 3-4 years, you're doing something called "timing the market" , common financial literate sense tip :nows the time to buy more

>>1092893
>with banks at 2.5% pa.
Confirmed for third-world. So $1m USD really means about $2000, based on the degree that third-world faggots lie on this board.

>>1093047
I live inner suburbs, Melbourne.

>>1093050
Would rather not say, sorry. My portfolio is managed for me, and i really don't want even the tiniest risk of it being traceable to me.

File: soosmay14two1.gif (13KB, 470x264px)

13KB, 470x264px

>>1093047
>real estate is still a good investment in Aus
Bruh

>>1092893

To be honest, you probably would have been better withdrawing from the market in August or January, it might be too late now. Then again, it might not, it's a tough call. Personally, I reckon that the economic headwinds are still fairly strong, and that the markets have further to fall, but that's just a guess based on what I've read and gut feeling.

>>1092893

why not keep some money in and have it ready for the crash to buy up stocks at a discount

>>1092914
>major crash would recover in a similar way to the 2008 one.

Pretty sure we didn't recover. We just dropped interest rates to increase borrowing/spending. The whole market is built on bad credit right now. we just pushed back the real results of the '08 crash.

>>1094232
Exactly my concern. There's nothing left for them to use to prop the stockmarket back up next time it crashes.

Thanks for your advice everyone.

I'm going to be selling 75% of my portfolio, as i'd like to keep a some money invested, just so i can tell exactly how things would've gone had i stayed in.

>>1092893
Yes, you shouldn't pull investments just because of down times, that's called letting your emotions drive you. With that said, if it's really bugging you I would since that worry can be obnoxious as shit to deal with. Nice ammount of money you got there op.

>>1094247
Yeah, i'm not pulling it because its down. It being down 4% sucks, but that wasn't my concern.

My concern was that i see bad times ahead.

>>1094232
Tou moght want to look at a chart of the s&p over time and re evaluate that statement

People owning stock they bought after the crash have done phenomenal

In fact , record highs

>>1094232
>>1094243
There's no way that either of you have a college degree. Go study macroeconomic effects on the financial markets and as well as credit markets in general. Money was cheap in the early 2000's and it's way more expensive now. Even given the overbought markets brought on my QE from the Fed, this is still a much better investment environment for someone with enough money to safely hedge against market corrections.

>>1094253
Same thing man. Fear drives your choices.

>>1092893

take the money in cash and put it in a vault. if shit goes down banks might not give your money

>>1094260
Not every college degree is economics..

>>1094261
Well sure, but fear is a human instinct that stops you from doing stupid/bad things. Not always bad.

>>1094260
You sound like a nigger trying to explain things it can't comprehend

>>1093590
People gotta live somewhere bruh, I wouldn't write off an entire class of investment based upon that chart

Stocks crash from time to time and it doesn't fucking matter, good companies will still go up in the long term. Your worries are childish.

>>1094840
Sure but property has been increasing in price 5-10x the rate of population growth even factoring immigrants and suchlike. Supply demand curves n shit. Everyone's just convinced real estate at any price is a sterling investment and banks are retardedly willing to comply.
Australia's real estate has a cumulative value like 2.5-3x higher than the entire market cap of our stock market.

>>1094840
>people have to live somewhere

I bet they never said that in other property bubbles

Another ausfag here, I was thinking of buying stocks in companies like Telstra and Woolworths that have a habit of paying reliable dividends and franking at 100%, and using those dividends to re-invest in more stocks with the goal of having a reliable second income stream in about 25 years. Does anyone have any experience with this or thinking of doing something similar?

I'm kind of worried that the Government might remove franking now that the GST hike is dead, but to be honest I don't much about this kind of stuff.

>>1092936
What game?

>>1096137
>Woolworths
They're still in business in Straya?

>>1094856
>>1094840
Just wait until they legislate against negative gearing (it's been a long time coming). The prices will fucking plummet, anyone buying property right now while legislation is being considered is an idiot.

>>1096158
Yeah, it has about 40% share in the food shopping market. It, and its largest rival Coles, are facing competition from other store chains that are slowly growing and offering cheaper prices, so I'm not fully convinced they're a smart investment.

>>1096171
This is good advice. Once negative gearing is gone you'll have thousands and thousands of properties people can no longer afford to hold onto and it'll become a buyer's market.

>>1096137
Franking is just taxing the dividend before it gets to you?

Why would they remove it?

>>1096176
So that they can effectively tax some people twice.

>>1096187
But they ATO has gone out of it's way to eliminate as much double taxation as possible. Why would they undo what they spend years doing?

They've signed international treaties with most of the developed world to ensure people aren't double taxed.

>>1096190
That's a fair point, but if the Government is looking for additional tax revenue isn't it a possibility they'll look at people receiving franked shares? There definitely is a push to increase the amount of revenue into the Government, like what what that other anon said about removing negative gearing.

Like I said before, I don't know much about the share market. I guess whatever tax is lost through franking could be so insignificant that it isn't worth it changing the law, or if it might kill investment they wont touch it.

>>1096194
There's no tax lost through franking. It's like saying there's lost tax because they credit you for the withholding or GST you paid during the year.

>>1096201
But isn't franking just the Government not taxing both the corporation and the shareholder? Surely if the Government decided to tax both it would see an increase?

>>1096210
Sure just like double taxing lots of things would see an increase.

It also won't happen.

Also, you don't get franked dividends free. You get a refund/pay tax depending on your marginal rate.

It's simply taking out the 30% tax from when the company paid you out of retained earnings.

You've got to remember that you can't take the current situation, theorise a new tax on it and assume that % of current whatever figure is what you'd get.

You'd see less companies paying dividends. You'd see changes in share prices which would filter into income/expenses for traders or CGT for investors.

That is why most people who support removing negative gearing do so because they want to see house prices come down.

>>1096213
Yeah, that's kind of what I figured, thanks for the responses.

>>1096137
Telstra's looking awful cheap, and I'm considering going in myself. Pretty reliable dividend. I also think WOW will bounce, despite all the bullshit in the media.

>>1096171

Keep fucking waiting, they talk about abolishing it every couple of years. Won't happen. If you think it's going to be gone in the next few years and are waiting for it to pop before getting in the market, enjoy sitting on your arse doing nothing for an extended period of time.

>>1096175

No, its not. Go take a look at what happened in 1985 when they tried to quarantine negative gearing and swiftly changed their view after it fucked rental costs. Google it if you're lazy.

Remember, negative gearing is a tax break because you are LOSING MONEY. Think of it in terms of a capital loss - do you think the ATO is going to suddenly say "hey you made a loss, fuck you - you get nothing for it" and abolish capital losses too? No. Why is it different for negative gearing? Don't buy into the bullshit.

>>1096319
PS - Should note. I'm not negatively geared but I am in the market. So take my view for what it's worth. People misunderstand it and buy into the daily telegraph bullshit.

>>1096319
I'm not saying that I buy into the negative gearing, but plenty of voters do, and you can't ignore that. Labor claimed a few days ago that they plan to limit negative gearing for existing real estate if they win the election, and the Liberal party is uneasy about the whole situation and may end up doing something similar in May. I don't know why you guys always say 'Will the ATO do something? No!" when the ATO has absolutely no say in what they do, the Government does. And if the Government is getting pressure to do something about negative gearing from their constituents, they'll at least say they'll do something, and probably will follow through. Honestly if Labor goes into the coming election saying "We're for the everyday battlers, we'll remove negative gearing and drive down rent costs" I bet they'll do well.

Also its worth mentioning that the rental costs in 85 only went up in Sydney and Perth, every other city saw a decrease in rental costs. The increase in those two cities may also have been influenced by other factors. But that isn't important, what is important is knowing whether negative gearing will exist in the future. Right now buying property and expecting to balance things out through negative gearing is stupid because you're placing a (perhaps) million dollar investment in the hands of people who will view you as the minority and will be more than willing to throw you to the dogs if it gets them into office. I really don't see how buying property and negative gearing it now is a good idea.