Want to invest 100-250k

Hi,

Currently I've only small amount (~7.5%) of our cash invested in shares (~55k, rest sitting in banks) and want/need to invest more. Thinking about investing 100k into Vanguard High Growth Wholesale fund initially and then adding another 150k or even more over time.

Is this a good idea to invest lump sum like this? Alternatively I could keep buying VAS/VGS ETF's on ASX in say 25k chunks. This forum mentions LIC's a lot, should I look into those as well? Also, would it be wise to wait for share market dips?

As a couple we can save 80-100k a year after all expenses, so potentially we can invest say 60k a year on top of current savings.

Thanks in advance!

 

Have a read of the Peter Thornhill thread, it touches a lot on LIC's and isn't as intimidating to start as the gazillion page LIC thread, the threads generally about investing for dividends, but it crosses over and touches on ETF's and direct shares

There's a good PDF file posted in there too not 100% on the title but its something like 'LICs investing for the long term'

 

Do property instead it offers you much greater leverage and many other benefits over shares.

 

Think its better to buy in smaller chunks so you can average out the cost, while keeping in mind brokerage fees.

 

High growth usually implies high risk. Only invest money you can afford to lose. May want to consider diversifying funds.

 

Thank you everyone. I've started reading a lot about Lic's on this forum and slowly changing my mind about ETF's and in particular Vanguard wholesale fund.

 

You will always be able to find a million reasons why you should not invest in managed funds, ETF's, LIC's, direct shares or even shares at all. But you will also find a million reasons why you should

My belief is that you have to match the investment vehicle/s to your personality/character/emotions/lifestyle etc. Once you invest the money you don't want to be thinking about it all the time - the time and effort spent in researching should not still be spent after you commit - if it is then maybe you have chosen the wrong investment vehicle!

I don't see anything wrong with ETF's, LIC's the wholesale index funds or direct shares. As long as you spend your time enjoying life (more specifically what's important in your life) and not double guessing yourself then I think that's a big asset right there.

 

Not advice but if you don't trust yourself, don't really want to get too involved, want to beat the vast majority of managed funds and want to just get on with your life the Vanguard wholesale diversified fund option you mentioned at the start might be worth investigating further. $100k to start, setup periodic BPay with designated savings, forget about it then get on with your life.

As mentioned by the previous poster know what type of person you are and the type of investor you want to be before committing hard cash.

Given your income investing $100k to get access to the Vanguard wholesale fund is not really that much of a lump sum. A small sum compared to buying a investment property.

Only an opinion of course.

 

Leverage is a double edged sword. It can also amplify your losses.

What are the benefits property has over shares?

Historically over the long term the best performing asset class has been shares.

 

There are a few threads about prop vs shares and I think many see that both have their place.

How Long Will it take to RETIRE on SHARES

Why Property is Better Than Shares

Why Shares are Better Than Property

Investing $250k-300k for cashflow

 

This is the interweb, and it's your money ... at the end of the day, do what you are comfortable with. @Mac Fields has provided good links to start with. Search for beginners guide to LICs, good read too.

 

Getting back to your initial post perhaps you already had a potential solution. The head is tired tonight so the following thoughts "not advice" may be helpful or unhelpful depending on one's point of view.

With LIC vs ETFs vs Managed Funds (Index vs Active) it doesn't have be an all or nothing proposition. And just because nutters like me post a lot on LICs here doesn't automatically make it a sensible choice for someone else.

1. For example a person with no interest in investing other than wanting to save well for retirement outside of Super may choose to invest in a diversified index fund. A great example is Vanguards Wholesale Diversified Growth / high growth fund. It's cheap, covers the main asset classes / global diversification and It will outperform the majority of active managed funds. Kick off the fund, setup a periodic BPay for your savings then forget about it and get on with your life.

Information on it can be found here:
https://api.vanguard.com/rs/gre/gls/stable/documents/8391/au

For many that may be all they ever want / need.

2. Others with a wee bit more interest in investing may choose to use the same fund mentioned above as a major "CORE" of their portfolio. Choose the size of the CORE. It might be anywhere from 50 - 80% or more. Knowing they have covered all bases they can then choose to invest in a few other things to meet specific needs eg higher income, ASX Smaller Companies or god forbid to have a bet on speculative shares (likely pain / regret will be the outcome).

Be aware though that the moment you open a share trading account you could become victim to a whole Pandora's box of potential behavioural issues. Eg looking at the market continuously, fiddling with the portfolio, selling due to panic etc.

3. Then there's those of us with a greater interest in investing who hopefully understand what we're getting ourselves into. Listed shares / LICs / ETFs is what we will likely choose to invest in. There will be those who after having had a go realise they should have chosen or stayed with the first option. However this last option can still be a simple, minimal time consuming endeavour if desired. As simple as a few listed funds or as complex as you choose to make it (but not necessarily do better, likely worse).

Not licensed to give advice but hopefully some food for thought.

 

Thanks everyone for advice, really appreciated!

I should of mentioned in my OP that I'm not interested in property at the moment. I'm not completely new to investing, already have small amount (~55k) invested in VAS, VGS and some direct shares.

I didn't knew much about LIC's, but I did a lot of reading about ETF and I liked the idea. Accidentally found some threads about LIC's on this forum and more I read about them the more I like it as well.

Our goal (more like my goal, wife trusts me 100% is to retire with ~80-100k income from dividends, so need around 2 mil. in todays dollars. We're halfway there if we include super into account.

Speaking of Super, I will turn 50 next year, maybe worth putting some extra money now? I already salary sacrifice 25k, not sure if non concessional contributions would be good idea at this moment?

 

You will need to compare the returns inside vs outside super, the tax saved by investing inside super against the restriction of not being able to access super for another 8-10 years.