You can buy a nicer place that you’d like to live in eventually, rent it out for 5-10 years. When you’re ready to move in you sell you primary residence, don’t pay CGT, then move into the nicer place that you’ve been renting out.
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Take Crypto to the Crypto thread.
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You have ADA?
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Yep.
Also have SOL, BNB and Bitcoin.
And speculative TEL.
All have had the same trend.
ADA game changer
Hold onto to it next month contracts
Next 5 years todays ETH pricing
Take Crypto to the Crypto thread.
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Crypto isn’t investment.
Take it to the gambling thread.
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So I’m happy that my portfolio above is up over 4% in 6 weeks, it would be nice to keep that going long term.
I might have made a boo boo setting it up though. I bank with Westpac, so I logged in looking for a Westpac investment account, and it steered my to getting a BT Panorama account (maybe Panorama is the tracking software, rather than the account type? Could be BT investment account).
The bit of research I did basically told me this is Westpac’s investment arm, though while it’s linked to my online banking (I can see the portfolio balance when I log in), it’s definitely not branded Westpac (its BT), plus I have the BT Panorama app etc.
In any case, trades were only 9.95 each (I was expecting maybe closer to $25) but it’s making me hold $100 in cash and its charging me a monthly fee, which is a % of my portfolio and currently around $10/month.
Is this normal? Or should I be pulling it all out and managing it elsewhere? Is that even possible, or do I need to sell up and then buy back in from elsewhere?
Does Westpac have there own investment thingy that I somehow missed?
To my knowledge…
This is Westpac’s basic share trading facility…it has higher trading fees than what you mentioned, but I don’t believe it has any monthly fees:
I’m familiar with BT Panorama (I also have to use it for my BT SUPER INVEST account)…I think it’s just a piece of software, but I think Westpac/BT have been migrating a range of old legacy account types onto there…they must like it’s cost/flexibility.
I don’t know whether you can easily transfer your holdings across to the basic Westpac Share Trading facility. I suggest phoning Westpac to ask them.
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No account fees.
But that may be because I have other accounts with Westpac.
The fees per transaction can be reduced though you have to make a certain number of trades per month.
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There are hundreds of products.
BT is owned by Westpac just like Colonial First State is owned by Commbank.
Again, check the product name or the bank account name to figure out which you have.
Then google the name and PDS (prdocut disclosure statement) which all of these things will have.
Find the fee section. Read it.
If lost ask me for help!
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Signed up for the IMU offer. 25,000 shares and 12,500 options.
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Can I ask if your getting good returns net of all fees and charges?
I’m highly skeptical of these style of super investment products.
A LIC sounds exotic, but it’s really just a variation on a managed fund isn’t it?
I wouldn’t let the banks do anything that is your primary investment return product. Get it into a not-for-profit (or industry) fund.
Well in this instance they are just providing the platform(at a fee) and means to invest within super. In this case for the poster it’s about returns on LICs. So fund managers, not banks.
Super, it’s your money.
(I do agree with you though, a large well managed super fund should offer good returns in the long run). There’s not many or any large well run retail funds.
Size matters when it comes to investment IMO. I’m in an industry fund for that reason.
I’m not sure how you can answer how well a platform is doing when it’s the underlying investments that will determine the return. Whether it’s gross or net you can compare it with other platforms but they are really the ‘same’ investment. You can check by the APIR code.
To generically say BT has done well or poorly is not understanding how the product works.
The link again has the pdf with all the investment options.
I don’t agree with the first point at all. There are many well run large platforms, but the issue is most people don’t do anything beyond the default investment option. So you may get an underperforming fund, but it’s not the job of the platform to determine what you should invest in. That falls back to you.
Also industry funds are funny with regards to their investments anyway. You do know most of the will outsource 50-75% of the fund to external managers so places like commbank, bt, colonial, vanguard etc… The industry funds to well in the fact as you say getting a bulk discount for the funds under management with them. Industry funds as well used to only have 3 / 4 options. Thus is was very important to them that they always performed as best they can given there weren’t many other options within their platform.
Just some tips as well to help with language.
Platform. Think of this as the main account where you invest your money from. This can be in shares, managed funds, fixed interest, cash etc… It ‘wraps’ everything up nicely into one package for you as opposed to having to open up separate accounts in many different places. Platforms will charge a fee for this service, some via transaction fees, some an annual fee, some a percentage of balance fee or all combined. The platform can be a superannuation product or it can be a non super product. As a generic rule, if it offers life insurance within the product it’s a super platform.
Investment Fund. Think of this as where you money is spent. These can be generic like a ‘growth’ fund to specific as ‘global brands fund’, ‘etf ethical fund’, ‘bhp’ etc…
Index fund. Basically it will ‘copy’ a benchmark. Say the asx100 it may hold 30 / 40 of these shares. index funds will not trade often (i.e. change what it holds) thus the fees are generally much lower than an active fund.
Active fund. Basically will have a benchmark as well but may have a more specific theme to it. This could be aussie shares, industrial shares, property shares etc… As they are more active you can have more transactions happening behind the scenes so costs may be higher. A good manager will beat their benchmark target.
Multimanager fund. These can be themed but rather than just say giving your money to noonan, you give 10% to joe, 25% to fred etc… These can be be cheap or expensive depending on how active the fund is.
Hope this helps a bit.
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Paying platform fees and trying to beat the market on your super over the long term is a mugs game.
As for who drives the hardest bargain with external fund managers in terms of their margin? The large funds. Absolutely they do.
And some are so big they have decided to pay their own stock pickers. The largest in the country for starters.
I used to work at a fund management company…and now I’m just a full-time investor…so, I put in more time than most people are going to be able to.
I really only started investing in LICs about 3-4 years ago, and as you say, they are much like managed funds…but this is what I like as a trader:
- I can buy a LIC and it gives my quick diversification…I used to do individual company analysis for work, but to do it at home is too exhausting for my liking…LIC valuation is comparatively straightforward, because they publish their valuation either daily/weekly/monthly.
- There is a human manager of the LIC, so I rely on them to continually reposition the investments into good value…I have limits on the fee structure that I’ll pay for that - some are disgracefully greedy and I won’t touch (1.5%pa + 20% of absolute performance…WTF???).
- LICs can trade at big discounts to NTA, and that’s what attracts me…during 2020 some were trading at 70c in the dollar. That provided a huge buffer of value, to cover the manager fees (compared to an ETF). So the 12 months since have been lucrative, as the LIC’s investments recovered, plus many LIC discounts recovered back to say 85-90c in the dollar.
Now I’m seeing much less opportunity…maybe the party is over…or might just have to wait for the next panic-selling event.
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