My setup plan

Discussion in 'Share Investing Strategies, Theories & Education' started by Shawn, 18th Mar, 2017.

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  1. Shawn

    Shawn Well-Known Member

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    Hi all,

    So I've recently been considering diversifying my investments as I have $0 in Shares/ETFs (outside of my Superannuation fund investments) ; and I think some sort of holdings in this space is crucial in order to grow a strong portfolio through the years.

    I currently have been using Acorns to round up a lot of loose change over the last year which has resulted in around $500 sitting in there.

    I was looking to set up some sort of regular payment plan which would see 40-50% of my net income filtered into an ETF purchase with every fortnightly paycheck, however, I've decided that for the time being Acorns isn't too bad.

    The reasons why I believe Acorns isn't so bad until I build up my portfolio :
    - No brokerage costs
    - No buy/sell spreads
    - 0.275% Admin fee + 0.342% Investment Fee in the Aggressive option.

    Plan for me is to keep throwing money into the Acorns account until I reach circa $30K at which point I will make 3 large purchases into 3 separate ETFs and continue my structure there.

    Total fees of 0.61% are relatively high right now, but I am coming off a small base.

    Happy to hear anyone else's ideas about how I can setup my ETF portfolio.

    Cheers,
    Shawn
     
  2. Pier1

    Pier1 Well-Known Member

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    Wise person say: Poor person buys twice
     
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  3. trinity168

    trinity168 Well-Known Member

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    Have a read on the beginners guide to LICs. :cool:
     
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  4. Nodrog

    Nodrog Well-Known Member

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    Yes, why pay CGT when transferring from Accorn to direct ETFs holdings. Do it properly right from the start.

    What many do is have a set amount of their pay check deposited into a dedicated online savings account. When you have a few grand in there buy / top up selected ETF. Repeat.

    But before doing any of this consider what is the most flexible and tax effective strategy / structure for the long term.

    Not liscenced to give advice.
     
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  5. Nodrog

    Nodrog Well-Known Member

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    May or may not interest @Shawn but I'll attached it here. An alternative for or compliment to ETFs.
     

    Attached Files:

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  6. Nodrog

    Nodrog Well-Known Member

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    I meant to ask was my reply what you meant:confused:?

    @Pier1 you're a very wise person. First we had the ultimate summation of a long term LIC buying plan (seems to be getting progressively shorter:D) and now this piece of wisdom. Is not your middle name Confucius:)?

    IMG_0154.JPG

    IMG_0155.JPG
     
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  7. Pier1

    Pier1 Well-Known Member

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    Yes