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Financial planners and index funds

Discussion in 'Other Asset Classes' started by Matt Ad, 29th Jul, 2016.

  1. Matt Ad

    Matt Ad Well-Known Member

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    Hey team!

    So Iv played with shares before and decided I wanted to focus my energies (and money) on property investing for now.

    However... it has occurred to me that a managed fund or Index fund would be a good way of saving/ building a bit of extra cash for 20+ years (Im relatively young).

    As there are sooo many choices and ways to go about it, can anyone suggest any ideas or give there thoughts on financial planners. If anyone has had good experience with planners they can recommend in Perth too that would be appreciated!


    Matt
     
  2. Blacky

    Blacky Well-Known Member

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    Thoughts on 'planners'?
    Yeah. Don't bother.
    I have issues with planners calling themselves planners. Most of them are salesmen. They sell you a 'product' and earn money from it.

    Do your own research and go direct.

    Look at a few previous threads on here regarding index funds, etf's and shares.

    Look at total market etf's as a good start (vanguard have a few decent ones on offer)

    Blacky
     
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  3. Matt Ad

    Matt Ad Well-Known Member

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    Thanks mate!
    Yh was hesitant about motivation for some planners, although it was recommended to me so thought I would look into it. I like the idea of going direct, I feel you learn more that way, its why Iv avoided buyers agents thus far.

    Iv been looking into vanguard, trying to make it a "set and forget" kind of investment.
     
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  4. Blacky

    Blacky Well-Known Member

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    There were a couple of great threads on here about share investing. Some stretching to 20odd pages.

    Dig them up and you will have a good chunk of the info you need to get started.

    Blacky
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Many are salesmen - especially the ex bank ones. But commissions have been banned for about 5 years now.

    A good group of planners are those under the Dover licence. They are independantly owned and advise on property and incorporate other non-financial products into their statements of advice.
     
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  6. Matt Ad

    Matt Ad Well-Known Member

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    Sunday avo sorted!
    ahaha thanks again, and I will try let you know how I go, although we may have to wait 20 odd years to know for sure :p
     
  7. Matt Ad

    Matt Ad Well-Known Member

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    Ok awesome, I will look into them, although I like what blackys is saying and stop being lazy, get out there and have a look ahaha. Iv read good things about index funds and there low fees, in the interest of diversification, I feel I should set aside some money to build slowly.
     
  8. Ouga

    Ouga Well-Known Member

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    "Trying is the first step towards failure" Homer
    Yeah, @Matt Ad have a read through these threads:

    Exchange Traded Funds (ETFs)

    Listed Investment Companies (LICs)

    Boglehead/Vanguard way to retire.

    Peter Thornhill

    And from memory this one was also a good read:

    What's looking cheap on the ASX?

    Will take you a little while, but it's a gold mine in terms of information and presented by quality speakers!
    Don't think you'll need much more after that! Most of the questions you would have as someone getting introduced to the topic have been answered already.
     
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  9. Matt Ad

    Matt Ad Well-Known Member

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    oh for sure! nothing new here, I guessed that most of my questions have been asked again and again ahaha
    thanks for the info! I will certainly make some time and try to read through

    Have you got any investments with shares yourself?
     
  10. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I have found that there is just too much good information out there. I kept getting sidetracked by learning different strategies and ideas, but have now given up reading about shares and just focus on the bogglehead method of investing in index funds.
     
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  11. Matt Ad

    Matt Ad Well-Known Member

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    I'm finding the same thing! lots of information out there and sometimes get overwhelmed and do nothing ahaha

    Iv started reading up on "blogglehead" and like some ideas Iv been seeing,
    as I plan on investing for 20+ years passively the compound effect and a little less risk, are both important to me.
     
  12. Heinz57

    Heinz57 Well-Known Member

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    "Bogle" if you are googling
     
  13. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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  14. S0805

    S0805 Well-Known Member

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    read.... 'The Bogleheads' Guide to Investing'
     
  15. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I have this book and it is a good read, but a bit USA centric. Still worth getting I think,
     
  16. Heinz57

    Heinz57 Well-Known Member

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  17. marty998

    marty998 Well-Known Member

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    Huh... I thought there was a rule in Boggle that you get double points for spelling out "Vanguard"
     
  18. Matt Ad

    Matt Ad Well-Known Member

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    Yh the book looks good!
    I will add it to the list.
    the general concepts that iv read online so far all seem straight forward, and to be honest, most of the key points, like living below your means and invest consistently I'm doing.

    Today I sat down and tried to nut out a plan and after reading a few threads, I got a 3 stage plan including 3 funds, for diversification. 1 is the asx300 Vangaurd index, with DRP of around 5% of my income in the first 12 months and slow increases to 10% from there (as I still want to allow for property invest, development ect which cost alot). 2 and 3 include ETF's and emerging markets, which does increase risk but also increases return. I plan to split my cash 3 ways but not contribute at the start to fund 2 or 3 at all.

    "set and forget" see you in 25 years when I'm 45

    I still have a little more research to do for funds 2 and 3 but its looking like a plan :D
     
  19. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Seek some advice on whether you should be better off on a DRP or receiving dividends, paying down debt and borrowing to buy more of the same shares (debt recycling).
     
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  20. Matt Ad

    Matt Ad Well-Known Member

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    Will do, not to much of a fan of borrowing to buy shares, but havnt looked into it to much
    Will research some more