Seeking your sound investment advice

Discussion in 'Share Investing Strategies, Theories & Education' started by momentum26, 6th Jun, 2020.

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  1. momentum26

    momentum26 Well-Known Member

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    Hi all,

    This is my first post and I welcome your constructive feedback/input and provide guidance based on your past experience whereever possible.

    I am considering to start investment in Shares/ETF, (basically outside of property) that generate ongoing dividend income and will also grow over time. The intent will be to hold the assets in joint ownership with my wife, and buy more in time so that the dividend return continue to grow too.

    We currently have a PPOR debt at $400k, and available funds at $75k borrowed which is setup as split loan from the PPOR equity ready for investment. Once the funds are used to purchase income producing asset, the interest on the loan will become tax deductible. We then direct the dividends income to grow the offset account.

    I have spent sometime reading the posts on forum in terms of where to invest but I personally find it does tend to get overwhelming and confusing as I am unable to decide what could be a good % split and details relating to portal that I should consider using based on your past experience.

    I am putting this post out there, hoping that I’d receive some pointers from other experienced forum members.

    Incase I have missed including any background information that would help understanding my situation, please let me know and I’ll update my post with it.

    Many thanks in advance.
     
    Last edited: 6th Jun, 2020
  2. mtat

    mtat Well-Known Member

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    Hi, welcome to th
     
  3. momentum26

    momentum26 Well-Known Member

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    Hi Mtat,

    As you rightly figured. This indeed is my first post in the Shares section of the forum. I hit the submit button to early resulting in incomplete post.

    I’ve managed to edit the post and have inserted the details. Hopefully they look a little better now. Thank you!
     
    Last edited: 6th Jun, 2020
  4. Willy

    Willy Well-Known Member

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    A couple of grandfather LIC's + VAS and never be tempted to think about it again.
     
  5. momentum26

    momentum26 Well-Known Member

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    Thanks Will and your input is appreciated. Are you please able to name the LICs as I am only starting.
     
  6. SatayKing

    SatayKing Well-Known Member

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    Complete list of exchange-traded products on ASX.

    An extensive list of what is available to you.

    You will need to decide what suits your attitude, risk and investment approach.
     
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  7. mtat

    mtat Well-Known Member

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  8. willair

    willair Well-Known Member Premium Member

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    Maybe have a long read of Terry W posts on how to set something up tax wise before starting planning your portfolios ..myself I have a bias towards Banks and low cap startups and most times there is a danger that investors draw the opposite conclusion ..good luck.imho.
     
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  9. Willy

    Willy Well-Known Member

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    MLT,AFI,ARG
     
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  10. Buzzyear

    Buzzyear Member

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    Are these a safe bet ? Long term hold with reasonable dividend ?
     
  11. Willy

    Willy Well-Known Member

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    Heaps of info about them on here.
     
  12. momentum26

    momentum26 Well-Known Member

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    Thanks Willy. These
    Thanks Willy. Fair to say that idea is to keep increasing the holding for these 3 solely for the dividends perspective as there is less of capital growth involved from last 5 years pricing?
     
  13. SatayKing

    SatayKing Well-Known Member

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  14. Willy

    Willy Well-Known Member

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    Picking individual stocks you'll get some that do much better and some that do much worse which can sometimes do your head in not to mention the time and stress involved. I think the simple approach of regularly adding to a couple of LIC's and an ETF and concentrating on building a dividend stream helps to stay on course psychologically.
    If I concentrate on the share price too much I end up procrastinating and spend time on the sidelines instead of in the market.
    If I concentrate on the cost base I tend to only want to buy when I'm lowering my cost base which makes no sense when your expecting capital growth as well.
    I find concentrating on the number of units held is the best way to stay on course. The more units you hold the more dividends you get. It's as simple as that.
     
  15. momentum26

    momentum26 Well-Known Member

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    Thanks Willy, the above makes sense. The LICs noted in this post appears to have a history of continuous dividend payments & 100% FC year on year along with competitive MER which makes them very suitable.

    As I am starting out, I am thinking to keep myself invested to Australian markets and have 80/20 approach, where 80% is LICs and 20% is ETF for the available $75k I have.

    AFI - 30%
    MLT - 30%
    ARG - 20%

    Regarding ETFs, I have looked at VAS, IOZ & A200. Any recommendation on which one would get better return? Out of the three, A200 has the lowest MER at 0.07% and I would think the performance for all 3 should be more or less similar but I am not 100% sure

    I’d like to receive feedback/comment from all on my above approach. Feel free to recommend an alternative strategy based on your experience.
     
    Last edited: 11th Jun, 2020
  16. momentum26

    momentum26 Well-Known Member

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  17. momentum26

    momentum26 Well-Known Member

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    Thanks SK. The chart helps getting the historic view of their performance beyond 5 years which is great.

    Any recommendation on website where I could find the NTA for individual LICs? Based on my little reading so far I understand it is advisable to buy a LIC when the share price is under its NTA value. Any feedback/comments in addition to my question are very welcome.
     
  18. Burgs

    Burgs Well-Known Member

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  19. SatayKing

    SatayKing Well-Known Member

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    No problems. It's a site I looked at when I was into that sort of thing. Not so much now but I did remember it was around.
     
  20. momentum26

    momentum26 Well-Known Member

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    This is a great resource. Thanks for sharing it.
    It does the calculations based on daily feeds.
     
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