Investment Advice - $10,000 a month

[Deactivated] on 14/03/2018 - 19:31

Hi Ozbargainers,

Just looking for a bit of advice about investments that my wife and I can look at investing into, we are about to sell our investment property and once we do this we will have a mortgage free ppor and $50,000 cash. Our monthly savings average out to about $10,000 after the mortgages are paid off.

Just looking for some advice on investments we can look into, we are 28 and pretty risk averse and looking for more passive investments. I've had a look at ETFs and AREITs.

Our house is worth around $900,000 and we would like to diversify out of residential property. We also do not want any debt.

Thanks for your suggestions

Financial

Comments

  • [Deactivated] on 14/03/2018 - 19:32
    +14

    Well you've come to the right place

    • poboy on 14/03/2018 - 19:40
      +12

      Yup. The higher the stakes, the less seriously we take it.

  • kingmw on 14/03/2018 - 19:46
    +4

    If you have that much extra cash and you don't need it right now then I would 100% recommend salary sacrificing the maximum ($25k each) into your super where you can then invest into these ETFs.

    Also excellent work on saving so much if that is how much you can put away a month after expenses.

    • [Deactivated] on 14/03/2018 - 19:57

      Thanks, I'll look in to salary sacrificing. Ideally we are note looking to put too much extra into super at the moment, it's so long till we are able to use it. Might be a good option for our tax though.

      • kingmw on 14/03/2018 - 20:34
        +2

        I do this to reduce my tax and accelerate my investments as I don't need the excess income now (maxed out my offset account).

      • tomsco on 14/03/2018 - 22:06
        +2

        Not that you need to answer, but if you have a fully paid off $900k home and can save $10k a month, is there any reason you wouldn’t want to put some in super?

        Do you want some liquidity for an eventual move?

        • [Deactivated] on 14/03/2018 - 22:41
          +2

          Our workload at the moment is very high and not sustainable long term, just looking to grow our passive income so once we start a family we can scale it back. I think we will start putting up to the maximum in super and get our life insurance and income protection coming out of that.

  • SBOB on 14/03/2018 - 19:48
    +2

    10k into an etf every month and hope the long term stock market trend continues..

    One of the new diversified funds from vanguard would be an easy choice

    • [Deactivated] on 14/03/2018 - 19:59

      Yeah that's what we have been thinking, just looking at other options that are available as well.

      • cloudy on 14/03/2018 - 20:38

        I don’t think you really need to look at other options. Shares are a vehicle to invest in anything worth investing in really, in shares you have exposure to property all sorts of companies in all sorts of industries.

        I can’t think of many investable assets that aren’t inbedded in shares.

        • dcep on 14/03/2018 - 21:03

          crypto … ohh waitt

        • Kangal on 14/03/2018 - 21:57

          @phunkydude:

          I think the top three hopefuls seem to be Bitcoin, Ethereum, and Cardano.

        • SBOB on 14/03/2018 - 22:23

          @Kangal:

          You lost me at cardano… ;)

        • Kangal on 14/03/2018 - 23:05

          @SBOB:
          Hey, if you're gonna criticise Cardano you better criticise all cryptocurrencies.

          Cardano didn't follow the weak altcoins and inflate in price end-Nov and nose-dive mid-Dec. It actually maintained its base price to almost mid-Dec then went up in value until early-Jan. And even after it lost value, it still held most of its value until early-Feb, whereas most altcoins lost theirs back in December. Overall it defyied the market trend which is what you want as an investor. And now? It's close to its value back in early-Dec before the price jacking… so its essentially cheap and there is market pressure for it to increase in value from US$0.20 to around US$0.45 (normalised).

          So when the next wave of price increases come this year, which many people expect in late-Nov (but I say its probably going to be EOFY), it stands to gain a lot of value… basically a double-wave. https://coinmarketcap.com/currencies/cardano/

  • sandman87 on 14/03/2018 - 20:36

    Whack your money in an index fund.

    Check out this Podcast from Freakonomics. Got me into Index funds and haven't looked back.

    http://freakonomics.com/podcast/stupidest-money/

  • Caped Baldy on 14/03/2018 - 20:58
    +1

    High yield cars and selling the petrol.

  • LakeVostok on 14/03/2018 - 21:09

    SUbscribe to the barefoot investor for some honest financial advice:

    https://barefootinvestor.com/

    • [Deactivated] on 14/03/2018 - 22:05
      +1

      You mean the guy who completely missed Google, Facebook and the Crypto booms?

      • LakeVostok on 16/03/2018 - 18:40

        i mean the guy who gives honest advice and steers clear of speculative high-risk investments!

        • [Deactivated] on 16/03/2018 - 18:43
          +2

          High risk investments, like building your primary place of residence in a bush fire zone?

  • jug123 on 14/03/2018 - 21:28

    Invest in something you can enjoy. Old cars, wine, art, etc..

    • [Deactivated] on 14/03/2018 - 22:03
      +2

      This, don't go your whole life stashing money and not enjoying it.

      • [Deactivated] on 14/03/2018 - 22:11
        +2

        Probably the wrong forum for it but you don't need to spend money to enjoy life, wealth also gives you security.

        • [Deactivated] on 14/03/2018 - 22:31
          +1

          Depends how much you want to enjoy life. I can only enjoy life so much doing free things such as going to the beach and spending it with loved ones. I'd much rather spend my hard earned dollars on overseas trips with loved ones etc. Each to their own. Just remember, you can't take your bank account to your grave.

  • railspider on 14/03/2018 - 23:49
    +13

    You have a spare $10k a month to invest? Spend $500 and visit a financial adviser. God damn, this is a bargains & bikies website.

    • Hunter80 on 15/03/2018 - 23:00

      You pay to visit financial planner who will give you generic - one size fits all advice… and get paid in "commission/kickbacks"…

      Sir, you are legend..

  • Hithere on 15/03/2018 - 09:06
    +3

    It always makes me laugh when people claiming that they have sums of money to invest post on totally unrelated forums asking randoms for advice.

    The first thing I'd do is find a competent Investment Adviser and talk to someone with knowledge and experience.

    Even asking your Bank Manager for suggestions would be a better and more sensible option.

    • MrBear on 15/03/2018 - 12:33
      +3

      But you are providing advice to him and you are on the internet. Therefore he should follow your advice and not take your advice right?

  • jhmtaylor on 15/03/2018 - 09:23
    +1

    I suggest you put consider LICs because of transparency, drps and franked dividend. Avoid the large older ones because their performance is lagging.
    Some worth looking at include FOR.AX, WHF.AX, QVE.AX MFF.AX and the Platinum ones. Do not go chasing Lics with high divs and no or negative nta growth

  • paulinspace on 15/03/2018 - 10:26
    +2

    My investment advice is take a year off work and go see the world. The best investment you can ever make is to invest in memories.

    Sounds like you are well ahead of most people your age, and many that are mine, in terms of wealth. But its the wealth of a life well lived that you will ponder on your deathbed, not your money.

  • TheBilly on 15/03/2018 - 10:36

    To be honest, I have found that if you can't figure it out, don't do it.

  • Allan Thomas on 15/03/2018 - 12:55

    Firstly, you should get advice from your tax accountant as to whether your superannuation situation is optimised. If not, fix that first.
    It sounds like you don't have any significant experience with the stockmarket. If that's correct, wait until you have a minimum $100k to invest then make an appointment with a full service stockbroker for advice and assistance. If you're very risk adverse, listed investment companies (LICs) are probably the way to go, at least while you develop knowledge and experience of the market. ETFs can be OK but there's so many of them, it's hard to know where to begin. Stay right away from anything that's not listed, probably, in your case, for starters, on the ASX.
    Good luck!

  • CCDee on 19/03/2018 - 00:03

    Put 1% into bitcoin. The risk adjusted return makes it worthwhile.

  • movieman on 19/03/2018 - 17:44

    Why sell the investment property?

  • Steptoe on 19/03/2018 - 23:00
    +1

    Write a book about how to be debt free, with $1M in assets and save over $100k per year by the time you are 28 😹

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