100k in savings into shares?

Discussion in 'Shares & Funds' started by Renee17, 18th Apr, 2020.

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  1. Renee17

    Renee17 Member

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    Hey guys, long term reader but have never posted before. I'm looking for some opinions on what others might do in my situation..

    I'm 28 and have saved 100k for a house and I have an IP worth about 300k in Qld. I have no other personal debt.

    After a fair bit of research in the last few weeks on economic cycles, I'm assuming the market will fall again quite significantly. Psychologically I have no problem putting 100k towards real estate but due to lack of experience, I'm hesitant when it comes to shares. I see the next 12-18 months as a chance to really set myself up but with a lack of experience I'm interested in what others would do in my situation. I would plan on diversifying across many blue chip companies in different sectors to reduce risk.

    I'd like to hear opinions if others would feel comfortable putting the full amount of savings into shares, how many different companies they would look at etc. and how they would diversify, or just any input that could get me thinking.

    (I'd be looking to withdraw approx 90k in 2-3 years to purchase a property and leave the remaining amount for long term hold)

    Thanks in advance for any feedback
     
  2. Renee17

    Renee17 Member

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    Thanks for the reply, my assumption is going off trends and economists that predict the bottom to be after at least one or two rebounds after the first big crash. I know I could never predict the bottom so I have looked into dollar cost averaging as a strategy. I'm basing my strategy off the depression and gfc where the bottom of the market was at least 12 months after the first major drop. I'm not expecting this crash to be small, so if it doesn't drop significantly again I'll just keep the cash and invest in property.

    I wouldn't feel great if it falls that much once I've bought.. that's a good point and something I'll have to consider
     
  3. Brady

    Brady Well-Known Member

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    Was in similar position GFC, was thinking of buying CBA shares @ $28. I didn’t, bought an IP. I know which one I would have preferred!
    Doesn’t mean it’s the right decision this time.
    And how do you time the bottom? What happens if you go in too late and drops 30%, then takes 2-3 just to recover that 30%
     
  4. Renee17

    Renee17 Member

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    Thank you, I think about the risk of going in but keep forgetting there's risk in not taking the opportunity too... I think the closest thing to a crystal ball is assuming history will repeat itself
     
  5. number 5

    number 5 Well-Known Member

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    With that being the case, the stock market is not the right place for your savings. HISA.
     
  6. Renee17

    Renee17 Member

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    Appreciate it, I might have overlooked that!
     
  7. George Smiley

    George Smiley Well-Known Member

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    Basically there's a user here with an excellent stock strategy called Sackie. Send him a PM, he'll happily offer you advice......

    Just kidding.:D
     
    Never giveup likes this.
  8. Fargo

    Fargo Well-Known Member

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    Remember current prices for most stocks are a prediction of what the company will be earning in 2 or 3 years time, especially for popular stocks it can be more, so you could be taking risk for little gain in that time period. I would not invest a lot in a perceived low risk stock. in an attempt to get meagre gains, I would invest a little in some stocks in an attempt to get high returns on a little, eg keep 80k cash. Tomorrow morning I would put about 4k ( am actually putting more) in an unfollowed stock such as EOS about the same or more in AD8 ., be ready to strike next time the sky is falling on what momentarily falls to a ridiculous price with another 8k set aside for that, or just put 10k in ETF ATEC. EOS has government contracts and provides vital updated technology for defense and protection of communications with few competitors the main one has shares in EOS. It recently passed a real test and saved a western military base and Australians from missile strikes by using lasers to heat them up enough to destroy the guidance systems.
     
    Gypsyblood likes this.