Financial Advice For Young Couple

Discussion in 'Financial Planning' started by skinner84, 5th Jun, 2019.

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  1. Cate Bell

    Cate Bell Well-Known Member

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    Australia
    Exactly, and start a side business if you are PAYE, add value to your properties, play the long game, get rid of any dud investments along the way- this is what I tell my kids.
     
    Cate Bell, 6th Jun, 2019
    #21
    skinner84 likes this.
  2. geoffw

    geoffw Moderator Staff Member

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    Not individual shares per se - almost all ETFs, which are technically shares, but shares holding shares matching various indices. Australian, Us (S&P and Nasdaq), worldwide, plus property and bonds. The split was broadly as recommended by the FP.
     
    geoffw, 6th Jun, 2019
    #22
  3. bunkai

    bunkai Well-Known Member

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    Sydney
    You might want to run the numbers on a few scenarios (say to age 80) so you can make an informed decision.
     
    bunkai, 6th Jun, 2019
    #23
  4. MWI

    MWI Well-Known Member

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    17th Jul, 2017
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    Location:
    Lower North Sydney NSW
    I agree with the extra work but the extra debt is leverage which in property enables you to buy more asset.
    So for example with $100K you could borrow extra $400K and invest say $500K, if your total investment just grows by 10% ($500K x 10% = $50K) that $50K would represent 50% ROI (return on the money you invested of $100K).
    BUT, if you make 10% on shares on $100K investment this would represent $10K (without leverage).
    Just to communicate why property is more attractive to me as you can actually borrow more, if the bank lends you up to 80-90% as opposed to margin lend on shares of maximum 50-60% it indicates to me banks/lenders consider property as less risky more favoured asset then.
    Also because it is not as liquid, hard to sell, it makes that asset class also less risky to volatility, IMO.
    Anyway, best of luck in your investing and keep on sharing!:)
     
    MWI, 6th Jun, 2019
    #24
    virgo, skinner84, QldKoolies and 1 other person like this.
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