Join Australia's most dynamic and respected property investment community

New SMSF to be invested in shares

Discussion in 'Other Asset Classes' started by The Silver Bear, 29th Jun, 2015.

  1. The Silver Bear

    The Silver Bear Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    47
    Location:
    Sydney
    Can't do property as money only recently moved here from the UK.
    Might think about commercial RE but not in the short term.

    Would you buy shares now or wait until after the potential Greece exit?

    Have read the other SMSF thread here with great interest.
     
  2. Cadbury99

    Cadbury99 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    71
    Location:
    Sydney
    i'm not permitted to provide advice but if I had money in my SMSF to invest right now I would not be brave enough to buy before the Greek referendum.
     
  3. The Silver Bear

    The Silver Bear Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    47
    Location:
    Sydney
    A friend who works in the finance game popped over and helped me make my first investment.
    He put an interesting spin on my original question - 'buy on the rumour, sell on the news'.
    So we bought a few ETFs to get going, going to drip feed the money in to 'dollar cost average'.
     
  4. TwoDogs

    TwoDogs Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    55
    Location:
    Sydney
    I bought today, just a little. Super is a much longer term investment than any Greek stuff. Buy the dips, and if there are some more dips maybe I'll buy again. Easier said than done with all the noise around right now.
     
  5. Redwood

    Redwood Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    342
    Location:
    Melbourne
    Hey Silver Bear,

    Have you established your SMSF as yet? Assume it will be a QROPS fund, if yes, then please ensure you updated your Trust Deed in June by 'deed of variation' as required.

    An experienced investor can take advantage of the current uncertainty, its a matter of knowing when to buy and sell, some of clients are making a killing at the moment more from luck than anything. Traders, are shorting and doing well. Its not just greece we have to worry about the chinese will have a bit to say also.

    Cheers Ivan
     
  6. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,521
    Location:
    Sydney
    We need to do something with our SMSF.
    Had a couple hundred K just sitting in cash for a year or 2 now.
    We are heavily invested in property, so thinking of putting these funds into the sharemarket.
    Would putting it all down on the ASX 200/ All Ords be a bad thing?
    I prefer Super to be a long term set and forget, but still want to achieve reasonable returns.
    Any other suggestions in a simple sharemarket investment strategy?
     
  7. The Falcon

    The Falcon Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    957
    Location:
    Sydney
    A simple option, just about as simple as it gets ;

    50% VAS (Vanguard ASX300 Index ETF)
    50% VGS (Vanguard MSCI World ex Oz index ETF)

    tick dividend reinvestment plan on both and add new inflows in the same ratio as above.
    given your substantial Oz property portfolio i'd be looking to add in some International exposure as above rather than all XJO.
     
    KayTea and Terry_w like this.
  8. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,521
    Location:
    Sydney
    Thank you Sir.
    I will look into this further.

    Would you recommend leveraging into this conservatively at something like 50% or just go straight cash?

    Thanks
     
  9. The Falcon

    The Falcon Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    957
    Location:
    Sydney
    When you say leverage Ace, what are we talking about?
     
  10. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,521
    Location:
    Sydney
    Can you buy into these funds on margin?
    I'm not so familiar with the financial markets.
     
  11. The Falcon

    The Falcon Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    957
    Location:
    Sydney
    Per my understanding, SMSF can only use specialised products like Macquarie Equity lever, the interest rates suck...like 7%. Frankly, I wouldn't bother. Also, for a set and forget investment with callable debt, I'd probably keep LVR 40% or lower. At 50% LVR on 75% LVR approved portfolio with 5% buffer, you will be at margin call if market draw down hits 38%.
     
  12. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,521
    Location:
    Sydney
    Ok, cash seems good to me.
     
  13. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,521
    Location:
    Sydney
    Yo Bobby,

    Hook me up with a broker please.
    This is what my guy said:
    You can make this investment directly through an online broker.
    This will be a direct investment by your SMSF into Vanguard and you can trade any time you like, it is the cheapest solution.

    If you do not want to go through an online broker the SMSF can purchase the ETFs from Vanguard retail and hold those like ‘issuer sponsored shares’ directly without a broker.

    What's the next step?
    Any recommendations?

    Thanks
     
  14. The Falcon

    The Falcon Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    957
    Location:
    Sydney
    Ace, don't know maybe Commsec? the platform looks ok (I use it for checking prices). I've got accounts with Deutsche Bank and Lonsec, but you don't need that.
     
  15. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,521
    Location:
    Sydney
    Thanks.
    I'll check out Commsec.
     
  16. KDP

    KDP Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    246
    Location:
    Singapore
    Interactive brokers is worth a look. I'm not sure if they're suitable for SMSF as I don't have one but rates and fees are great.