ETF Need Help Building Investing Plan

Discussion in 'Shares & Funds' started by 15283, 15th Feb, 2019.

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  1. twisted strategies

    twisted strategies Well-Known Member

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    yes many plans have the ability to take part of your divs in cash ( rather than all cash or all shares )

    some will let you to allocate a number of shares rather than a percentage of you holdings ( i prefer percentage .. you still get the magic of compounding but at a slower rate )

    AND you can normally change that before the next div. date

    for example t had planned ( and still might ) to change a big share of my holding's DRP to 50%/50% in January 2020 when i plan to ( officially ) retire
     
  2. 15283

    15283 Active Member

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    That's great to know. And to change it do you just simply log onto computershare and change it or whatever service you organised it through?
     
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  3. Hodor

    Hodor Well-Known Member

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    Given you talked about putting $70k in to Vas,mlt and VGS leaving $14k cash and adding $14k a quarter from earnings I would consider a lump sum. You need to have the head game for it. How would you feel if it drops 50%?

    You can switch DRP on and off at leader via computer share/link etc
     
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  4. 15283

    15283 Active Member

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    To be 100% honest with you @Hodor I wouldn't like it if it went down 50%, I don't think anyone would. How I would react is different though. I'm completely aware you can't time the market, nor can you do anything to change the wims of the market. I know that over my long term investing timeline that price will supersede past my buy in price so it's better, if it happened, to take the hit now with 70k in the beginning, than 1mil in 20 years.

    Edit: it's better to recover it over 30 years than 10
     
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  5. twisted strategies

    twisted strategies Well-Known Member

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    the last time i did that ( about 2 years ago ) YES
     
  6. twisted strategies

    twisted strategies Well-Known Member

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    share price drops ( unless it ends in a company failure or opportunistic take-over ) are not a bad thing IF you aren't a 'forced seller ' ( can afford to wait it out )

    in 2011 facing big across the board share price slides ( i was a novice then ) deciding to CONSIDER buying more of a share when it dropped more than 20% below my current share price average

    i didn't buy every share like that but i did think carefully about it each time

    one mistake i did make was buying a fixed number of shares ( say 100 MQG each time ) instead of a fixed $value this doesn't look important until the share price drops 50% or more , then the maths are obvious
     
  7. 15283

    15283 Active Member

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    Why did you buy a fixed number @twisted strategies ?

    I'm not a forced seller, my expenses are low and my savings + job is more than enough to keep me afloat for quite a long time.

    In fact, I just read this article on lump sum vs DCA which was quite interesting. I'm sure it's nothing any of you more advanced folk have seen before.

    How to Invest a Lump Sum – Of Dollars And Data

    I still need to figure out if I should go the personal name or trust route first. These 12 hour work days don't give me much time :(
     
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  8. twisted strategies

    twisted strategies Well-Known Member

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    *** Why did you buy a fixed number ? ****

    A. i was working on jobs at short notice at the time , so might place an order at mi night or in the lunch-break , relying on spotting a falling share price rather then putting the extra thought in

    say you are buying BPT 5000 shares is easy to do on the smart-phone rather than working out 6000 or 7000 would have been better brokerage efficiency .( and still within the budget )

    now i am 'retired' i think for hours if i want to on what price , how many or is there a better opportunity at the time . ( or adjust order prices if the slide looks very steep )

    trust v. personal name is something you should consult a professional advisor ( or quality tax accountant ) over . your long time view will have traps and bonuses

    say you decide to buy a house ( or investment property ) have children etc. etc

    *** These 12 hour work days don't give me much time :( ***

    watch your health , i was 'retired ' 3 years early , because i wasn't just getting 'old and tired .. i was seriously ill and chugging along anyway ( a high chance of dropping dead on the job is very distressing to your co-workers or so they say ...i know co-workers collapsing on the work-site really disrupts productivity for a while i have seen that happen several times )
     
  9. 15283

    15283 Active Member

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    Ah I understand, hopefully it didn't make a lsrge negative impact on your portfolio in the long run.

    I will be calling my accountant tomorrow. What are the traps and bonuses you're mentioning? Also, what questions should I ask my accountant? I don't know anything about this, apart from that it's recommended by most people.

    Yes, health is wealth @twisted strategies . My boss had a heart attack 2 weeks ago at work and has been off simce, hence I've been doing bigger hours.
     
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  10. twisted strategies

    twisted strategies Well-Known Member

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    not huge losses but opportunities not fully exploited

    for example my MQG holding ( my second largest holding ) could have been at least 10% larger ( and stayed within budget ) and after that MQG divested the SYD portfolio so my SYD holding would have been 10% larger all compounded via the DRP schemes

    i hope your boss returns in a timely manner ( a buddy had a heart attack at work and the insurance company rushed him back to work early only for him to have a second BIGGER heart attack in the first week back .. the first time the doctors gave him a stent , the second time a triple bypass in a different part of the heart ... no more work for him Work-cover won't insure him anymore .

    traps ??

    trying to predict future legislation changes is a biggie ( just see how things have changed in the last 10 years )

    i chose without advice because i wanted 'quick and flexible .. so liquidated my super and started investing without a formal structure ( i can do 100% cash with a few clicks of the mouse if i want to , or invest in projects a normal SMSF would not allow or could delay for months )

    30 years plus is a whole different ball game .

    fronting the accountant ... have a potential plan ready , and an idea on how you want to be financially in 30 ( plus ) years .your expert has a place to start , and doesn't need to stick to a vanilla 60/40 strategy hoping that will be 'close enough ' at retirement .

    ALSO how long will you be working long days ? (employment stability isn't what is was in the 1990's ) ( you probably can't rely on that income all the time in the next 30 years )
     
  11. twisted strategies

    twisted strategies Well-Known Member

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  12. 15283

    15283 Active Member

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    10% can be a lot after a lot of years of compounding.

    He'll actually be back at work next week.

    So if I read this correctly, you hold all your holdings in personal name?

    Ok no worries. Would the plan that I posted at the beginning of this thread be enough?

    Well, to be honest with you @twisted strategies I'm a fuel tanker driver. So by law I'm allowed to work up to 13 hours a day. Since I was 21 (I'm 27 now) I don't think I've ever worked under 50-60 hours a week.

    The only way my work will slow down is if people stop buying fuel and food, which I don't see happening soon.
     
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  13. twisted strategies

    twisted strategies Well-Known Member

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    *** So if I read this correctly, you hold all your holdings in personal name? ***

    yes bit mostly in two accounts ( different online brokers ) ( some holdings are unlisted or issuer sponsored )

    since you are a professional driver ( of heavy vehicles ) watch your back ( i have several buddies with that issue .. .. potholes , speed-bumps and jumping into and out of the cab does the damage in time

    ..

    plan

    i meant for when you are retired .. a nice yacht/house-boat like James Packer or a small rural property to retire on , .. or overseas travel ( a house isn't so essential then ) you get the idea

    sure you might change it halfway through but it will give your planner some hints
     
  14. 15283

    15283 Active Member

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    Can I ask why you chose to not hold in a trust?

    Yes, I've heard things like this happening. I do my best to maintain a healthy lifestyle but wear and tear still happens as I age.

    I suppose it would be a mixture of two things. I'd like to have a base here in Australia, but my goal is to travel for 6-9 months of the year. Fwiw.
     
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  15. twisted strategies

    twisted strategies Well-Known Member

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    why no trust ?

    first my time frame was only 10 years ( which turned out to be 7 years )

    and i didn't have a long term plan .. i considered buying a very nice Ferrari and having the best week of my life , instead .



    so i needed my options flexible from 2011 to 2015 i was tending towards ( extra ) investment properties in preference to shares ( but still hold SOME shares for cash-flow )

    there is no-one in particular i have planed to leave any legacy to ( yet )
    the surviving family are litigious , greedy infighters .. they will fight over it anyway .. i may as well just give it to the lawyers .. they will get the lion's share anyway .

    hopefully your family is completely different .

    for the later years i did consider a house-boat and travel up and down the Murray-Darling river system , but that probably isn't an option now ( health reasons )
     
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  16. 15283

    15283 Active Member

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    If you had a long term plan, would you have done things differently? And does this hit you much harder come tax time?

    I wish. My boat looks pretty similar to yours.

    Not sure if serious but I hope everything is alright on your end...
     
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  17. twisted strategies

    twisted strategies Well-Known Member

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    deposit ???

    when i was 25 i bought my first investment property on mortgage

    and since i had no credit history they labeled me sub-primes and charged me 17.5% interest ( plus insurances )

    now days i look for a deal i like at full cash settlement on the table

    it just isn't was worth the extra time and hurdles and double-dealing BS

    *** Not sure if serious but I hope everything is alright on your end...***

    time will tell if i made the best choices ( so far so good )

    the personal health is a shifting scenario
     
  18. 15283

    15283 Active Member

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    Jesus, I hear Peter talk about it in Motivated Money how inflation helped erode people's mortgages, but if it didn't, would it even be possible to ever pay that off?

    Well I hope you get better and stick around, I've enjoyed learning from you :)
     
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  19. twisted strategies

    twisted strategies Well-Known Member

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    seems to have taken another unusual turn ( probably not for the better, but time will tell )

    you started planning ( and thinking ) early that SHOULD give.. you a nice edge .

    however time and distractions will test you thoroughly
     
  20. 15283

    15283 Active Member

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    Ah I see now, leverage can be a great tool but also a scary tool if in the wrong hands.

    Yes well I will be seeing my accountant next week (Only time I was able to get an appointment) in order to get more information on the trust set up.

    Either way it goes, I will be buying my first parcel of shares next month so I'm happy to finally get the ball rolling.

    It will, it will. Hopefully I'm able to manage my emotions and take advantage of these times.
     
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