Trading Account or Other Investing Options

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  Doggiie on 04/04/2019 - 20:14

  SelfWealth would definitely be one of your best choice for low cost brokerage.

  Another alternative would be buying into an investment fund, (e.g. Vanguard products, though not the ETF kind) which allows you to just BPAY however much you want into their account. The disadvantage is that the management fee is somewhat higher.

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    [Deactivated] on 04/04/2019 - 20:35

    Is there a minimum investment amount on the Vanguard funds.. which site can we buy it?

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      dcep on 04/04/2019 - 22:25

      vanguard site

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      cerealsmok3r on 10/04/2019 - 12:21

      I dont think there are any when it comes to ETFs but managed funds are $5k minimum

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    LemonShapedRock on 05/04/2019 - 06:45

    Why not the etf?

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  benny082 on 04/04/2019 - 20:39

  Just save Cash till you have enough to buy a decent parcel.

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    [Deactivated] on 04/04/2019 - 20:57

    you mean property?

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      ttam87 on 04/04/2019 - 22:01

      'Parcel' of shares.

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  Seraphin7 on 04/04/2019 - 21:03

  +1

  I use the Colonial platform to do exactly this (although there are a number of other equivalent platforms … do your own research). You can get into a range of investments through this platform (about 100-odd) and subject to some balance minimums or agreeing to a monthly DD, you can drip feed in whatever you like weekly (or whatever frequency you like).

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    [Deactivated] on 10/04/2019 - 11:06

    +1

    Thanks this was a great comment. Exactly what I was looking for. Could you please guide me through a few good funds that I can compare.. of course not financial advice. i will do my research.. the list of funds available is quite intimidating.

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      Seraphin7 on 10/04/2019 - 12:52

      Thanks mate.

      DISCLAIMER - The following simply describes what I'm doing. You need to make your own enquiries before investing.

      I'll talk to you about one aspect of my dealings with the Colonial platform. I've got some other, more complex arrangements, but this (in my opinion) is a good starter, and very straight forward. This (again, in my opinion) will allow you to get going and build a base for your investment while considering more advanced options, but that will still serve as a core for your investment if you move to those more advanced options.

      This particular approach is one I've set up that is effectively for my children. It's held in my wife's name as the children are far too young to own it in their's. It simply has two investment options … (1) the CFS Wholesale Index Australian Share fund, and (2) the CFS Wholesale Index Global Share fund. I invest 65/35 in these two respectively and simply drop an amount in every week by scheduled bank transfer.

      As the names suggest, this gives exposure through index funds/componentry to shares listed in Australia and around the world. Using the index componentry provides for low cost investing with ongoing management fees of 0.41% p.a and 0.51% p.a. respectively. The buy/sell spread on both is 0.10%. In other words, if you put $1,000 in each of these funds for 1 year and then withdrew your money, and assuming the value of the underlying assets doesn't move at all, it would have cost you $5.10 on the Australian leg and $6.10 on the Global leg. The index componentry keeps costs low by simply tracking various stock market indices around the world and doesn't not have a fund manager making "active/stock picking" decisions … there is a wealth of information out there about this.

      In my opinion, the use of index funds in a similar way to what I have described (1) gets you going and exposed to relevant investments while keeping costs low and (2) is durable in that once you build up an investment base and some more knowledge, you will keep these investments at the core of your portfolio while adding additional funds as you go.

      I note that this (in my opinion) forms a very cost effective way of building up an investment portfolio over time in the way you have described it, i.e. drip feeding on a weekly/monthly basis in order to avoid brokerage costs. After some time, you may consider transferring chunks of cash into equivalent ETF funds, but keep up the drip feeding through a platform as discussed. This can reduce your ongoing fees, but is probably a topic for another day.

      I note that this is only a description of one investment approach I am utilising where that situation most closely mirrors your question. It may not be right for you in terms of general investment strategy and risk tolerance, and I only mention Colonial as that is the platform I'm using. They may be more suitable providers out there for you.

      As always, do your own research and seek your own advice.

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        [Deactivated] on 10/04/2019 - 12:59

        Very insightful. Thanks for taking time to write this up. Good to know about lower expense on index funds.. makes sense..
        Cheers.