Early 30's and $100k to invest..

I had read, as it is put in the linked article, that he bet a "portfolio of hedge funds". I took that to mean he bet a number of managers but maybe that wasn't the case.

Either way, if I was a betting man and I had only a 7% chance of picking a manager that would get better than market average returns over the long term, I'd politely decline that bet.

 

What would be the entry point of these four?

 

Think $500.00 is the minimum trade.

 

Sorry, I should have been clearer.
On the 31 of May 2019, the prices are
MLT - $4.59
VGS - $72.17
WHF - $4.65
VAS - $81.42
At what price would you start buying?

 

I just buy when I have the money really, it all washes out over time if you dollar cost average

 

$100k Vanguard Wholesale
VGS/VAS 50-80/50-20
$500/week
Not advice

 

What do you call long term ? Joe Magyer has way out outperformed Buffet in the last 10 years He was recognized as the best performing Analyst in the USA before coming to Australia 5 years ago. and has averaged about 35%p/a returns. He was recommending the WAAAX type stocks then. which even out performed the FANG stocks.

 

I don't think any-one is allowed to give advice with out an appropriate licence. But what I am buying tomorrow is more VHT on market as well participate in the entitlement offer which allows holders to buy at discounts which is an advantage I don't think you get with LIC's . I think it is WAAAX and NEA like, and at inflexion point and I will probably buy more AD8 when in comes out of a trading halt.

 

Sorry but I would use the approach as suggested in the book below to invest with leverage into IP instead:
How to Achieve Wealth for Life
Read and then see if this is the approach for you or your family, it was for us..with two kids too!
I dabble in shares as my income exercise but invest into passive long term residential property for my wealth exercise. Hopefully this makes sense?

 

Good on him. However, many active managers outperform for a period of time.

Did you correctly pick him as a manager of funds before he commenced his 10 year run of great performance? And what proof do you have he will continue to outperform from this point forward?

That's the tricky part for the average Joe who wants someone to manage their money for them so they can achieve better than market average returns. Choosing one of the very very very few active managers, out of the thousands around, who will outperform the market average, even for a short time, from that point in time into the future.

 

A200 is half the mer of VAS, the extra 100 companies vas hold currently make f all difference.Redirect Notice

 

Thanks @MWI I've read plenty of property books but never came across this one! Is he a CF positive or negative advocate? I really wish someone wrote a new book that used rentvesting in some of their working examples. The "extract equity out of your PPOR home" examples in all the books look so nice and pretty haha

 

The book doesn't tell you where to invest it illustrates the concept of investing, but in some way could be even applied as rentvesting (since you change to start paying IO on PPOR and direct he principal to one IP), via passive long term investing into just one IP.
He is an advocate for passive long term investing what you suggested in your thread...? It is an older book but very easily communicates long term passive approach.
As mentioned there are many ways to invest even into just property so in my opinion there are two main reasons why most Australian investors own 1 or 2 IPs only (this represents 90% of investors!).
1. Most people don't really understand what they want to achieve from property. When asked that question, replies may be, for retirement, for legacy, for our children, to supplement our income, to have other income, etc....
But what does that mean? You need to be specific, like when we started out. We wished to replace our incomes and have slightly more, so many years back we decided we wanted to generate $50K gross rent each from out property investing. Once we decide on this figure we than worked backwards to see what asset base we need to grow our portfolio to, even with loans at that stage.
2. Most people don't really understand or know what property investing strategy they will adopt. Basically how and where and when they will invest? This needs to have at least some clarity, will you buy say within 3 states (SYD, MEL, BRI), within inner or middle rings, this may mean say units in SYD or townhouses with renovation potential, where in inner or lifestyle suburbs, in QLD only houses, with renovation potential....etc... What is your property investing strategy you will adopt?
If you heard of Chris Gray he did exactly that, he was buying only within few suburbs (inner and lifestyle close to beach), 2 Bed, 2 Bath, 1 Car IPs, with renovation potential.
I enjoyed his story, he actually never bought his place, he rents, yet invested first, rentvesting. If you haven't heard his story get a cuppa and enjoy his story below:

 

You can top up your super to $25k per year and enjoy tax deductions. Downside is you can’t use that money for 30 years