Investment advice

So we’ve finally done pretty well out of Oz and in particular O/S shares.

Starting to feel a bit jittery though, and thinking about Oz property and gold.


Any thoughts?

1 Like

I’ve been splitting half to oz shares and half to something low risk which I can’t remember, cash I think? For a little while now cause I was jittery. Now I’m bored and want to get back in the game.

But theres no in waiting I little longer to see what happens in the US i suppose.

One thing that grown in value lately is Lego, could be worth a look.

The debt bubble will burst at some point. They were predicting the housing bubble years before it happened because it was obvious to a lot of people who were looking at the real data. So find out what makes a profit when inflation occurs and when the price of products skyrocket. Is it resources, metals, gold, energy, food.

 

but never look for a quick fix when it comes to investment stocks, you want to look at what could be valuable in 5-10 years time.

 

it's a bit like going to a casino. it's hard to predict what the markets will do and what will influence the stocks.

 

be sure to talk to a financial advisor about what is your best options right now.

 

lego is an investment to build upon

1 Like

I heard last Christmas that a couple of relos (or friends of relos) had "cashed in their super" and bought "investment properties".

 

I queried whether this was a. possible or b. prudent.

 

They'd probably had to transfer their assets to an SMSF but then there are rules about how much of your fund you can hold in a single asset. And it has to be arms-length.

 

There are lots of shyster property developers who tell you it's the way to go, but you're probably copping statutory costs of 5 or 6 per cent, and the developer ain't doing it because he likes the way you part your hair. And so many developments drop in value for a few years before the infrastructure comes good. I'd hate to have invested in the Docklands ten years ago. Might be starting to come good, but there would have been lots of nervous investors.

 

If I were putting super money into property, it'd be a rental propery I'd bought privately, not from a developer.

 

The most important thing to do is to make sure the financial advisor gives unbiased advice, not advice he gets the best commission from.

Can’t give advice here sorry. Any excess money I earn I put half in the mortgage and half in super. I’m 40 so super is obviously becoming more important. I have a fairly aggressive super set up which comes with risks but tbh I’m amazed with the returns and the growth on it ATM. Be interested what those in the know think is a reasonable growth return on super at the moment?idon’t have shares so can’t comment on that.

PS. I don’t have savings either, I put savings into mortgage and obviously have free redraw with no minimum, kind of forced savings as such. Perhaps there are better options for me?

This is kind of what I'm talking about.  I have my daughters trust fund and two lots of super heavily into O/S shares and we returned over 20% last year.

 

Nice.

I was always confident something like that would happen, but now it has I'm worried about the next hit.

Monorail.

1 Like

World market and shares are all over the place. It's hard to decide what to invest where because one minute there is positivity, next minute the government shuts down.

 

Best thing to do right now is blend everything. Cash, fixed interest, property, aussie shares, overseas shares.

 

Those who are really aggressive have a look at some small caps. To give an example JB Hifi used to be a small cap fund. Listed for $1.50 a share from memory now around $21.

 

If you aren't sure what to invest in try a multi-manager investor. They work similar to how the industry funds work anyway, so for example of their pool they'll give 5% for one company to look after and 10% to another etc... and rebalance it depending where they feel the market is going. They will have different categories as well based on right. High growth is high risk compared to conservative.

 

If you just want something that invests like the ASX 100, then something like an index fund is for you. This basically replicates to top 100 or 200 shares in a smaller portfolio. 

 

Agree with Noonan on financial advice and being aware where they recommend you to put your money. Avoid a FP via a bank where you can and be wary of the word 'independent'. 90% of the industry is pretty much owned by a Financial company (Bank or AXA or something along these lines).

 

With regards to SMSF they seem appealing but the accounting and auditing fees are about $2.2k p/a. You need to have about $250k in it to really be reasonable and if you're investing in mainstream products anyway then you really have to ask yourself if it's needed.

1 Like

https://www.platinum.com.au/Documents/Funds/All_PT_Funds/Quarterly_Reports/ptqtr_0613.pdf

 

Link above is for one of the investment managers but the commentary on all their funds is also an interesting read. Gives a good perspective on international markets as well as they specialise across the world via country (Japan and Europe) but also via style (like their 'brands' fund or 'technology' fund).

 

As usual this is NOT personal advice and it has not taken into account any particular person's objectives, financial situation or needs. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain financial advice specific to their situation before making any financial investment or insurance decision.

http://www.colonialfirststate.com.au/prospects/FS1126.pdf

 

Last link, this one has commentary on the Australian market. Be aware this fund is ULTRA aggressive as it has internal gearing (i.e. borrowing against what you have to buy more shares). Not as aggressive as external gearing though.

I took your advice before I read the disclaimer, so I can still sue Soulnet from Bomberblitz.

1 Like

The debt bubble will burst at some point. They were predicting the housing bubble years before it happened because it was obvious to a lot of people who were looking at the real data. So find out what makes a profit when inflation occurs and when the price of products skyrocket. Is it resources, metals, gold, energy, food.

 

but never look for a quick fix when it comes to investment stocks, you want to look at what could be valuable in 5-10 years time.

 

it's a bit like going to a casino. it's hard to predict what the markets will do and what will influence the stocks.

 

be sure to talk to a financial advisor about what is your best options right now.

 

lego is an investment to build upon

yep. If you can't afford to lose the money then don't invest in it.  If it's going to keep you awake at night worried then don't invest in it. 

 

And the boring rule of diversifying is an important one. You have to spread the money and the risk. 

 

The debt bubble will burst at some point. They were predicting the housing bubble years before it happened because it was obvious to a lot of people who were looking at the real data. So find out what makes a profit when inflation occurs and when the price of products skyrocket. Is it resources, metals, gold, energy, food.

 

but never look for a quick fix when it comes to investment stocks, you want to look at what could be valuable in 5-10 years time.

 

it's a bit like going to a casino. it's hard to predict what the markets will do and what will influence the stocks.

 

be sure to talk to a financial advisor about what is your best options right now.

 

lego is an investment to build upon

yep. If you can't afford to lose the money then don't invest in it.  If it's going to keep you awake at night worried then don't invest in it. 

 

And the boring rule of diversifying is an important one. You have to spread the money and the risk. 

 

Which is where I don't get the value of putting your assets into a single "investment property", particularly one where you're probably taking a 15-20% hit in the short term.

 

 

The debt bubble will burst at some point. They were predicting the housing bubble years before it happened because it was obvious to a lot of people who were looking at the real data. So find out what makes a profit when inflation occurs and when the price of products skyrocket. Is it resources, metals, gold, energy, food.

 

but never look for a quick fix when it comes to investment stocks, you want to look at what could be valuable in 5-10 years time.

 

it's a bit like going to a casino. it's hard to predict what the markets will do and what will influence the stocks.

 

be sure to talk to a financial advisor about what is your best options right now.

 

lego is an investment to build upon

yep. If you can't afford to lose the money then don't invest in it.  If it's going to keep you awake at night worried then don't invest in it. 

 

And the boring rule of diversifying is an important one. You have to spread the money and the risk. 

 

Which is where I don't get the value of putting your assets into a single "investment property", particularly one where you're probably taking a 15-20% hit in the short term.

 

As part of an overall plan then yes, agree.  Although personally I like property and if it's a good property, in a good location, and it's funded right and even if the lower end of the rental return works for you, then combined with the capital growth, it's a good steady way to build wealth. But I like the fact I have super, through work, to balance things out. 

What you want to avoid is the expectation of making a killing or a quick buck. You can, but you can also fail. 

 

 

 

The debt bubble will burst at some point. They were predicting the housing bubble years before it happened because it was obvious to a lot of people who were looking at the real data. So find out what makes a profit when inflation occurs and when the price of products skyrocket. Is it resources, metals, gold, energy, food.

 

but never look for a quick fix when it comes to investment stocks, you want to look at what could be valuable in 5-10 years time.

 

it's a bit like going to a casino. it's hard to predict what the markets will do and what will influence the stocks.

 

be sure to talk to a financial advisor about what is your best options right now.

 

lego is an investment to build upon

yep. If you can't afford to lose the money then don't invest in it.  If it's going to keep you awake at night worried then don't invest in it. 

 

And the boring rule of diversifying is an important one. You have to spread the money and the risk. 

 

Which is where I don't get the value of putting your assets into a single "investment property", particularly one where you're probably taking a 15-20% hit in the short term.

 

As part of an overall plan then yes, agree.  Although personally I like property and if it's a good property, in a good location, and it's funded right and even if the lower end of the rental return works for you, then combined with the capital growth, it's a good steady way to build wealth. But I like the fact I have super, through work, to balance things out. 

What you want to avoid is the expectation of making a killing or a quick buck. You can, but you can also fail. 

 

Particularly when someone else puts you into it...they're often going to be looking out for themselves first.

 

 

 

The debt bubble will burst at some point. They were predicting the housing bubble years before it happened because it was obvious to a lot of people who were looking at the real data. So find out what makes a profit when inflation occurs and when the price of products skyrocket. Is it resources, metals, gold, energy, food.

 

but never look for a quick fix when it comes to investment stocks, you want to look at what could be valuable in 5-10 years time.

 

it's a bit like going to a casino. it's hard to predict what the markets will do and what will influence the stocks.

 

be sure to talk to a financial advisor about what is your best options right now.

 

lego is an investment to build upon

yep. If you can't afford to lose the money then don't invest in it.  If it's going to keep you awake at night worried then don't invest in it. 

 

And the boring rule of diversifying is an important one. You have to spread the money and the risk. 

 

Which is where I don't get the value of putting your assets into a single "investment property", particularly one where you're probably taking a 15-20% hit in the short term.

 

As part of an overall plan then yes, agree.  Although personally I like property and if it's a good property, in a good location, and it's funded right and even if the lower end of the rental return works for you, then combined with the capital growth, it's a good steady way to build wealth. But I like the fact I have super, through work, to balance things out. 

What you want to avoid is the expectation of making a killing or a quick buck. You can, but you can also fail. 

 

Except when people think property they only think residential, so it's not even diversifying well within the sector.

A good way of thinking is this, for every transaction that occurs two people think they are getting a good deal. One is generally wrong.

A good way of thinking is this, for every transaction that occurs two people think they are getting a good deal. One is generally wrong.

It's a zero-sum game, at least in the short term....if you count the government as winning on taxes and duties.

I’m keen to speak to a financial advisor, whats the best way to go about it and what are the things I should be looking for.

Make sure he hasnt got a gold tooth ,a  large diamond in his ear ,and you think hes trying to bull sht you.

Website Design