Stock market advice for beginner

With individual stocks they can learn about AGMs, look at balance sheets, read the investors presos, follow the company in the press etc. A lot more tangible than an etf or lic and a lot more useful for learning and engagement imo. They aren't gonna make any life changing sums whatever they do, the knowledge and experience is the point.
WES/TLS/CBA/CCL/RHC would be a good little basket for this purpose.

 

And attend AGMs, maybe even able to claim it against tax when working. Not forgetting free tea and bickies at times. Healthier than nightclubs

Rereading a few comments including my own best listen to The Falcon as he's more in touch with the younger generation than an older fa!t like me. Maintaining interest is very important. Too long ago for me to remember what it was like to be that age. Can't even remember what age I am now for that matter

 

Just wondering if Hodor may have a DS who might like to meet my DD

 

Its great that she is interested in investing at that age. Investing in shares will be a good way for her to learn the basics. Pretty sure there is a competition put on by the ASX where you can paper trade and the winner gets a prize?

 

Ok, we have decided on shares to start, pardon my ignorance, how do I find a listed stockbroker from whom I can purchase? I believe I can do it all online and just place the order and code? I've looked at CommSec but still not sure how to do it?

 

Stock market game

Most of the major banks have a stock broking angle. ANZ have Etrade, Westpac have Online Trading, Commsec is CBA, etc. You don't need to be a customer of the bank to open an account (although that can make it easier - and usually cheaper brokerage) but you need to find the "open an account" page and go through the motions with your broker of choice. Once you have your account, and funds available, you can log in and place your order. Most of the sites will have a tutorial, and help from a real person on the phone, if you are unsure of anything.

 

Not yet.

I use Commsec, it is super easy.

Log in and hit the trade tab, fill in a few boxes, it gives you a cost estimate and you can hit "proceed" when done.

 

So, I can just create an account with them, and just use it for that? Thanks.

 

+1 for Commsec, really a neat platform, easy to use.

Check the details here and watch the video:

CommSec - Share Trading Account - Join Now

 

eTrade has been pretty shocking the past couple of months, like the Telstra of brokerage services with the amount of downtime, when the service is working though it's a nice clean product.

They're all much of a muchness though, probably easiest to just go with whatever bank you're main accounts are with to make the transfers as quick and easy as possible when just starting out.

 

Can you buy VAS straight through CommSec or do you have to do it through the Vanguard website only?

 

Straight through CommSec.
It is an ETF (Exchange Traded Fund) so you buy it through a broker such as Commsec, not vanguard.

 

Thanks for that

 

You could make worse choices than this:-

Intelligent Investor

 

I DID IT! I bought her a parcel of shares this morning, by myself! With Commsec! I mucked it all at the beginning but got there in the end, transferred her money across and it is done! Loving myself sik! LOL

 

Tax related question from another shares newbie... do I have to apportion interest if I transfer say $1000 from a fresh investment LOC to my CommSec trading account, but only spend $500 on shares?

 

What's the purpose of the additional $500 not in shares?

 

Sitting pretty, ready to be put towards an income-producing purpose, but not currently used for an income-producing purpose.

I'm inclined to think that only half the interest would be tax-deductible, so was wondering about calculating deductions when trading stocks on a daily/weekly/monthly basis, causing the balance of the trading account to fluctuate frequently.

 

It is a LOC, just take the "$500" buy some shares and leave the other "$500" for when it is needed. No need to pay interest on the extra borrowings then either.

I am not sure how it would be treated otherwise, speak with your tax advisor.

 

Yes.

BUT... if you're leaving that $500 in the Commsec account I assume it will actually pay interest so you're technically borrowing $500 for shares and $500 for interest, both of which are deductible (same part of the return as well). Though as has been suggested, you'd be better off leaving the $500 in the LOC because the interest rate is almost certainly higher on the LOC than the Commsec trading account. The transfer should be just about instantaneous so no real reason to have it sitting around costing you money.

It's also worth finding out where the brokerage on your trades is sitting at, for most it's somewhere around the $5,000 mark that you'll pay the same brokerage as you would on $100 so it makes sense to try and buy in larger blocks and minimise the amount of transactions and thus brokerage that you pay.