ETF wise, better to invest for Dividend ETFs or growth leaning ETFS starting out? Planning on holding for 20+ years. Perhaps a mix of the two?
I’ve got some vanguard etfs(an Asian one and a US centric one) and a Magellan infrastructure managed fund.
The only thing I’d say about etfs in general is when building a portfolio be sure to check the etfs portfolio. You may end up just owning a lot of say apple/Amazon/google etc
I think they are a good investment product. I don’t like to spend time analysing companies, I prefer to pay attention to macro trends.
Individual stocks stress me. Unless they are rolled gold blue chips. Even then the economy is changing so much and being disrupted id rather a market.
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A fortnight ago got sick of seeing the kids savings account earning nothing and bought some ETF’s. I got VAS 35%, VGS 35%, VAE 10% and IVV 20%. Probably a bit heavy on the US markets but can straighten it up when I make another purchase.
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Certainly dividends when you’re close to retirement.
Growth at younger ages.
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In theory, if you ignore tax, the only thing that matters is total return.
A pure dividend stock may cost you at least twice as much tax as a pure growth one (unless it’s an Australian stock, and we start talking about franking).
A fund of funds like VDHG can have odd results too: lots of people are crying about the massive recent taxable pay-out, primarily caused by balancing between the various assets within it during this past topsy-turvy year.
The best arrangement… depends on your circumstances and your behaviour under stress.
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I was a bit the same. Basically we have extra cash laying around gathering rust in cash accounts earning nothing. Wife didn’t want to throw all the savings in, but was happy for me to throw the loose cash plus now regular savings into it. So building from ground zero and trying to work out how to best to start. I’ve begun with VDHG but wondering if it’s worth having one and building one big amount, having 3 or 4 etfs spread out and what combination of growth or dividend ones to put into.
Yep, obviously blue chip stocks aside it always felt like gambling more or less on individual stocks, even with the research and anaylsis, which I don’t have the time to do. Etfs suit me more because of that reason, therefore etfs seem like the perfect option in doing the legwork for me. The old man who’s 67 still loves making money from calls/puts but that seems like far too much effort for me, he seems to do well at it apparently.
Are dividend stocks really worth it when you’re starting from ground zero, as you’ll need $100,000 worth to even start getting really decent dividends no?
I’m guessing the theory is that you build your portfolio and then can switch to dividends (to help live off)?
Interesting something like VHY has grown whilst also paying out dividends. I’m assuming that is the sweetspot to find?
VAS paid out a bigger distribution than VHY this quarter 
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Hope you’ve all setup trusts to distribute the income in a tax efficient manner, particularly those with children.
Depends how rich you are i guess.
I just make a extra super contribution at the end of the year to offset any cap gain/ dividends earned thru the year.
Rich kids are already maxxing out super contributions i guess, but id rather investments in my personal name and just put in the SGC.
kids $416 income each wife works so no benefit could distribute to my mum, but that just complicates stuff.
if loaded would just set up SMSF I guess
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I don’t necessarily agree. If you want to generate legit income from dividends, yes, if you want your dividends to offer a form of protection against declines in share value, not really.
I love a company that pays a healthy dividend. Hold them for long enough and they’re always solid.
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I’ve moved a lot of my savings into ETFs over the past few years since interest rates are so junk.
Given that I had absolutely zero financial knowledge whatsoever when I started, and no interest in putting a lot of effort and stress in, it’s been a good choice. It’s absolutely minimal effort for pretty decent long term returns.
One thing I wish I had known back then is to avoid buying funds that are somehow listed on the asx but not actually based here. Figuring out how to sort out taxes for VTS was a bit of a pain - although that might not be an issue if you have an accountant or are more of a finance guru.
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Oh you mean if the Etf is Australia domicile? Yes I’ve heard that if it’s not it makes tax times ten times harder.
Anyone in the 
gang in here? 
Yeah that’s it. I don’t mean to completely put you off VTS or any other American fund, but for me it was a bit of effort to figure out. I didn’t actually know at all until I got the first dividend statement and 30% of it had been withheld by the IRS. Turns out there’s a form that takes 5min to fill out that stops them doing that… as I said, I had no idea what I was doing 
I’m a big fan of healthy dividends (only just started getting into investing…left it a little late….if you consider 40 late…so my portfolio isn’t great)
Mining is by far and away my favourite
It’s not hard for an accountant. And really isn’t that expensive to get done.
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Dividend stocks you move into in your old age.
Park your millions if your a semi successful boomer into em and live off the returns.
But under the age of i dunno 45, when you on average have 20 years in the workforce? Stick with growth investments, your own education, the family home etc
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If it is for the grand kids then equities is a better option. Check out a global fund or even split between aus, global and emerging markets.
Kids time frame whether it is a first car, uni, first home deposit need equites not bonds.
Hope this helps.
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