Thoughts?

Hi Everyone,

I want to get started on investing regularly.

Age 29, Just married, 1yo daughter.
Also just bought my first PPOR in Sydney @ pp $4.65m @ 80% LVR with NAB

I guess the the plan is pay this down and then borrow against it to invest in ETF/LICs. If this is not a good idea please let me know...? How do I actually go about doing this? Where do I start?

What is the ideal mix of ETF? Looking for growth.

Not looking for anything active, purely passive investment.

Net Cashflow from my business is approx $200k p/m so I’ll be investing ~$150k p/m

What entity do I buy the shares in? What loan type do I need to get from NAB? Is there anything else I need to do or anyone I can go see who specialises in this?

Thanks

 

Hi B-Mac,

Definitely not qualified to advise with 150 large to be invested each month. The only thing a bit questionable in my mind is whether you have scope to be more ambitious with your investment, because you already have a conservative iron in the fire (your residence). Paying that down quick is easy and returns are fair, and it is conservative.

Why wouldn't your investment strategy be quite ambitious?

Buy another business? Equity partner in a start up?

Of course you may not have the bandwidth for that if you have to manage your current successful business.

good luck with what you decide

BFL

 

Woah, can I ask what sort of business you have? I think with that sort of money, I'd be looking at paying funds into an offset on the mortgage.

 

A good way to debt recycle, however majority of the banks wont allow cash out for investment such as stocks and ETF.

Top of my head I believe only AMP and Mac Bank allows it as long as its accompanied by an SOA.

 

now i am old ( mid 60s ) and debt adverse

so what about say an extra $100K attacking that mortgage ( when possible ) and the $50Ks accumulating in the bank until the market plunges and say put the first buy into STW ( i hold VAS but that might not suit you ) stockpile the $50Ks until you see another opportunity ( say a REIT if the property bubble pops )

learn about Dividend Reinvestment Plans , sometimes they will be good for you and sometimes not , so understanding them early will help your decisions

please remember passive still means WATCHING ( but NORMALLY less buying and selling ) you still need to be looking for that next good spot to park the next $50K ( or whatever the stock-pile is )

good luck

Dividend Reinvestment Plan—DRIP Definition ( DRP in Australia )

How Investments Grow by DRIPS (Dividend Reinvestment Plans)

 

Your living the dream mate. $200k net per month.....what do you do?

Your not moving a couple of kilos are you?

 

Engage one of: ey; kpmg; deloitte; pwc

asap

wtf is your accounting/advisory team doing?!

 

at 29 the OP is doing well either without a flash advisory team , or wily enough to get other suggestions to challenge the advisory team with , in view of getting a better outcome