Share Portfolio and financial advice with a potential recession on the horizon.

• 

  CheapAtTwiceThePrice on 30/07/2019 - 11:19

  +8

  "do you think I am in a position where seeing a financial advisor might be a good option?"

  ^ This. Absolutely.

  • 

    darz007 on 30/07/2019 - 11:27

    Historically I have been great at DIY investing all off my own research, but a looming recession, this is new territory for me that I have hit a brick wall on how to manage it well. Looking historically back to 07-09 on how the share market did, it was a blood bath on how bad a lot of high growth tech shares fell and it took many years for most to recover back to pre recession levels.
    I will most likely do this, but am still after some advice on here before I do so.

    • 

      EightImmortals on 30/07/2019 - 12:17

      +1

      Find the right advisor and not one who's just going to sell you a product or insurance they get a commission on. :)

    • 

      Cheap Steve on 30/07/2019 - 19:43

      +1

      Look back even further at the Tech Wreck of 2000 and what happened to the tech darlings of Davnet and Sausage Software.

    • 

      Hector on 31/07/2019 - 08:11

      +2

      I’m not a financial advisor
      Two questions you’d be asked
      - what is your time horizon to use the money (LT retirement, ST mortgage, others). This helps understand the mix of investments (cash, bonds, property, equities, commodities, currency, alternative assets)
      - what is your risk tolerance (capital preservation at all costs, can handle 10-20% drops in the short term but have a higher rate of return in the longer term… vs no tolerance for capital losses but a lower return). This helps you think about emotions/conviction in your mix

      The way you’ve worded your message suggests it’s for retirement / long term (unless you’re keen to pay mortgage off / invest in other properties)

      Your dollar cost averaging (dripping) is a good strategy in both up and down markets

      I wonder if you’re adequately diversified (holding equities that are influenced by different factors reduces portfolio risk. ie people always need electricity, so shares like AGL perform different than discretionary goods like Tesla or LVMH. Having a mixture reduces downside without giving away too much upside: read “Sharpe Ratio”)

      My sense: stay the course. Think long term, ignore short term fluctuations and keep dripping in. Of course unless you need $$ first. And think about more diversity

      Also if long term, are to maxing our $25k concessional contributions each year (plus the carry over of what you didn’t contribute last year.

      One more thought. Think after tax returns not pre tax. Capital gains in super are 0 when you take out at retirement. Capital gains today are at your top tax rate. Franking credits inside super don’t help, outside super they do, etc etc

      • 

        Hector on 31/07/2019 - 08:14

        +2

        One more: if you do go with an advisor get one that is fee-for-service (ie flat fee no matter what/where you invest). Smart people I know have an annual check in with an advisor to help rebalance portfolios and share latest thoughts…. not purchase their products where they have a pecuniary interest in where you put your money

        One other more: absolutely minimise fees. Aim to pay banks $0. Pay for good advice, but lowest cost super, lowest trades, lowest management fees. You’re in low $$ trades so $9/trade vs $19 is a 1% difference on a $1k investment. Compound that over a decade and it matters.

        Absolute Returns first (after tax, net of fees)

        • 

          kev98 on 05/11/2019 - 21:34

          @Hector: Where can you find good financial advisor who is willing to be fee for hire and not work on a retainer

• 

  one man clan on 30/07/2019 - 11:21

  +2

  Nice flex Barnaby

  • 

    darz007 on 30/07/2019 - 11:23

    +3

    I am well aware of how much of a flex this post is ahaha.
    Might consider getting a second secret family to look after, sounds like a great way to spend my money :P

• 

  brendanm on 30/07/2019 - 11:42

  Sell shares before the recession. Sit cash under the bed or in offset account. Buy them all back at the bottom. The trick is picking when to sell and buy, though you would likely make a killing even selling now and just buying once economy has gone to shit.

  • 

    darz007 on 30/07/2019 - 12:19

    My thoughts exactly, timing is pretty crucial.
    I am leaning to selling off a large portion of my ASX shares sooner rather than later
    And then US shares a few months down the line.

    Some shares have to wait a few months before I can sell them though due to it not being a year yet since purchase.

    • 

      diceman99 on 30/07/2019 - 12:59

      There will be a bounce on shares, once RBA has lowered interest rates, so 6 months, I expect shares to still be going up. After 6 months is when I will be cashing out

    • 

      HighAndDry on 30/07/2019 - 14:01

      Perth Mint just started trading gold (physical, not futures or other derivatives) on the NYSE. Tends to be a good store of value in downturns. I'd consider that as an option to cash under the mattress.

    • 

      7hours 44min ago on 30/07/2019 - 19:24

      -1

      Enjoy your CGT.

• 

  diceman99 on 30/07/2019 - 11:53

  You're paying too much tax
  90K income
  15K Rental income
  Own business 24K
  Share Dividend - Imputation credits prob $2000 dividend less $700 imputation credit
  Prob $8000 interest deductible investment loan
  Prob $3000 depreciation on investment property
  So your paying tax on approx 117300.
  I would say get another investment property, leverage up. Not in a capital city though, prices may still come crashing down. Growing regional center my recommendation
  Otherwise. Your to much into tech sector, diversify into, telecommunications, commodities, mining, construction, finance, metals, crypto currency
  I would problably just get into an ETF fund for Aussie ASX200 or Aussie and emerging market ETF. VAS or VGE, diversify your exposure to Tech stock slump
  Make sure any shares you sell, you've held for more than 12 months to get 50% off any capital appreciation tax liabilities.

  • 

    darz007 on 30/07/2019 - 12:29

    +1

    Tax wise it is better than it looks, I have a lot of deductibles on the house so it is slightly negatively geared.
    On the books, the business has so many deductibles it's at a large loss.

    But you are right, another house is defineltly an investment I want to save up for in the next 1-3 years. Have been looking in areas like Merrylands due to being able to pick up a decent house near Parramatta CBD on a decent size block of land for Under 800K as I am eligible for the NSW first home owners grant which is something I want to take advantage of, but I want to wait a bit longer as I still don't think we have hit the bottom as far as house prices are concerned in Sydney.

    Well aware I am too much in tech, it was a good move while tech shares were booming, I picked the shares well and knew it was a short to medium term investment strategy to quickly build up my wealth before diversification. 70% of my portfolio I have held for over 12 months, so I am good on that front.

    Not sure if going ASX200 and diversifying now in to other sectors is a smart move though, I feel that would not fare well at all during an Aussie recession. Something safer and closer to cash/paying off my loan/small growth/dividend shares is what il rather lean toward while I save money and re-invest once the market is closer to being ready to bounce back.

    • 

      diceman99 on 30/07/2019 - 12:53

      -1

      If you think the ASX is going down, then get into shares with a Beta Value of less than 1.
      If you think ASX is going up then get into shares with a Beta Value of more than 1.

      Anything greater than 1. Then if share market moves up, your investment will beat the market
      Anything less than 1, then if share market moves down, you will lose less than the market

      • 

        darz007 on 30/07/2019 - 13:03

        I have actually never heard of Beta Values before, thanks for this advice, will do some more reading around it.

    • 

      diceman99 on 30/07/2019 - 12:56

      +1

      I'm guessing that you live near merrylands.
      Widen your scope theres properties everywhere. You have to learn to manage from afar.

      • 

        darz007 on 30/07/2019 - 13:03

        +3

        I don't live close to Merrylands actually. It's a suburb I would personally hate to live in.

        My other investment property isn't even in NSW, its in Brisbane.

        I don't invest where I want to live, I invest where I see good capital growth potential and somewhat decent rental yield. I see it as a good suburb to invest in as I can afford an actual house in the area, rental yield isn't too bad, it has close proximity to Parramatta CBD and I can get it on the first home owners grant as I live in NSW.

        Still open to other parts of NSW or an investment property in another state, this is just what I am leaning toward at this stage, this may change.

• 

  Daddyhere on 30/07/2019 - 12:29

  +1

  You are doing really well….

  Been working in the financial space, given you deep understand of your own situation, I dont think you need adviser at this stage, they are costly (those reputable).

  Also, once recession occur, adviser wont be able to save your porfolio.

  • 

    darz007 on 30/07/2019 - 12:44

    Thank you, I am quite proud of what I have achieved to date, and its the very reason I am seeking advice as I don't want to lose the wealth I have created for myself.

    I am hesitant to see a financial advisor for this very reason. I also don't think I have enough wealth for it to be financially viable for me to see one. Plus, if there advice is just to invest in recession proof shares/cash/save my money/pay down my loan, then thats no shit sherlock type advice to me as all the reading i've done is already telling me to do that during a recession.

    My main concern at this stage is timing and what to do with my current shares, they are still growing and selling now may mean I miss out on future gains if we are over a year away from the the share market going belly up (assuming it even does). Though I am pretty certain the ASX is at very high risk of a fall within the next 12 months due to economic indicators flashing some pretty clear red signals.

    • 

      Daddyhere on 30/07/2019 - 13:48

      selling now may mean I miss out on future gains if we are over a year away

      My painful life learning is: its never wrong to take profit. in your case, the net different is 10% earning, for that 1 year? is it worth the risk?

• 

  brad1-8tsi on 30/07/2019 - 12:37

  I wouldn't pay off or use an offset account on the mortgage as it's a tax deduction. Why would you reduce the deductions you can claim?

  potential defensive investments:
  Gold bullion
  Bonds
  term deposits
  Consumer staples (food /drink/alcohol as people still have to eat or drown their sorrows) or their retailer (Coles / Woolies)
  Australian banks
  Companies that provide essential public services (utilities, elec, telcos)
  Cheap entertainment options (movie theatres, Netflix, etc)
  Medical industries (drugs, private hospitals)
  Aged Care / Seniors industries
  Funeral / Cemetary industries (the death rate doesn't decrease in a recession)
  certain areas of IT will still be in demand.
  Repair industries (automotive etc) as people will repair rather than replace.
  Cosmetics (look up "affordaable luxury")
  Accounting firms

  or spread the risk over an index managed fund or ETF

  You also didn't mention if you are salary sacrificing into super. Retirements a long way off but you'll save some tax if you have the cash to spare.

  If you have a trusted family member with a mortgage you could cash out a bit and lend them some money 50 points below their current rate.

  • 

    darz007 on 30/07/2019 - 12:57

    I don't have an offset account with my current loan, but I do have re-draw access. I will do more reading around this as I didn't know about tax offsets from offset accounts. Thank you for that gold nugget advice.

    Some great recommendations here of assets to get in to. Will do more research around this.
    First home owners grant is the other attractive prospect Im looking to take advantage off at some point down the track once I have a 20% deposit for a 600-800K house. Use it as my business address in order to claim interest deductions for 6 months, then rent it out after 6 months.

    I am not salary sacrificing in to Super currently, will also look in to this as I am now at a stage where my tax is high enough I should.

    Its probably also worth mentioning my financial situation won't always be this good, Im living back at home temporarily (6 months - 1 year) to save money, so rent and additional expenses that come with not living out of home will be on the horizon.

    • 

      diceman99 on 30/07/2019 - 13:07

      +1

      If have 100,000 loan and 10,000 in redraw. Then interest deduction is 90,000@5% interest
      If then pull out that redraw and redraw is 0. Then interest deduction is still 90,000@5%

      If have 100,000 and 10,000 in offset then interest deduction is 90,000@5% interest
      If then pull out that offset then. Then deduction is 100,000@5% interest.

      So in an redraw the amount deductible is maximum that the redraw ever was.
      So if you have 100,000 loan, then put in 100,000 into your redraw, then remove the 100,000 from your redraw, then your deduction is 0 forever.

      If you did the same thing in an offset account, then the deductible is always the current balance. (loan-offset)

      • 

        darz007 on 30/07/2019 - 13:21

        Thank you for that, if I am understanding this correctly, from a tax perspective, the offset account is advantageous over a re-draw because if you plan to pull from the re-draw, you can't claim as much interest back on tax? But, as long as you don't pull from the re-draw, it has the same tax advantages as an offset account?

        How would this work from a tax perspective if you have re-draw and plan to use equity for a new loan?
        e.g. $200,000 loan
        $100,00K in re-draw

        You then purchase a new property using the 100K equity as the 20% deposit?

        I ask, as using equity or pulling my money from re-draw in order to fund the 20% deposit on my next home loan is the plan in the near future.

        Offset accounts normally come with a higher variable rate, this is why I don't have one as I have been investing my money in shares due to the higher return, it is only now that I am changing up my strategy due to where the market is heading and it may worth considering going offset vs re-draw.

        • 

          diceman99 on 30/07/2019 - 13:29

          @darz007: from https://futureassist.com.au/offset-vs-redraw/

          Investors: Offset vs Redraw
          If you are borrowing to invest, however, choosing between redraw and offset can have a significant impact on your tax bill.

          Imagine you buy an investment property and have a loan of $500,000. The interest on this loan is tax deductible. You then receive a windfall that allows you to pay off $100,000, leaving a loan balance of $400,000. Soon afterwards you redraw $50,000 to splurge on an overseas holiday. The loan jumps to $450,000, but as the redraw is for personal use the loan amount attributable to the investment property remains at $400,000. You won’t be able to claim a tax deduction for the interest on the $50,000 redraw. What you will likely end up with is a headache from trying to manage the personal and investment components of the loan as future repayments or redraws are made.

          Now imagine that you deposited your extra $100,000 into your offset account. The bank subtracts this from your loan balance of $500,000 and only charges you interest on the $400,000 difference. The crucial difference is the loan amount is still $500,000 and all attributable to the investment property. The withdrawal of $50,000 from your offset account is unrelated to the investment arrangement. Yes, you’ll pay interest on the full loan amount of $450,000, but it will remain fully tax-deductible.

          Even if you are not a current investor but there’s a chance your existing home may turn into a future investment property, the same principle applies. This is where it could get very tricky.

          Provided you have the discipline to manage your offset account, it can provide more flexibility than the redraw facility and could save you costly tax issues. To be certain about what suits you best, always seek professional advice.

          • 

            darz007 on 30/07/2019 - 17:32

            @diceman99: This makes complete sense. Thanks for that :)
            I don't plan to take from the re-draw facility at all unless its to fund the deposit on another property. will do some googling around this to see how that specific scenario affects the tax deduction.

            • 

              diceman99 on 31/07/2019 - 17:56

              @darz007: You said you were going to redraw from investment property to fund your next property and were hoping to get the first home owners grant, then after 6 months were hoping to run business from the PPR. However if you were given the first homeowners grant then that would count as a personal withdrawal from your redraw.
              Cant have your cake and eat it to unfortunately

    • 

      brad1-8tsi on 30/07/2019 - 13:49

      First home owners grant is the other attractive prospect Im looking to take advantage off at some point down the track once I have a 20% deposit for a 600-800K house. Use it as my business address in order to claim interest deductions for 6 months, then rent it out after 6 months.

      If you do this then talk to an accountant first.
      1) You'll probably need a proper valuation at the end of each period or at least at the end of the rental period.
      2) Doesn't FHO grant have caveats about being a principal place of residence?

      I don't have an offset account with my current loan, but I do have re-draw access. I will do more reading around this as I didn't know about tax offsets from offset accounts. Thank you for that gold nugget advice.

      I'm trying to say that money in an offset account would reduce the interest paid on the loan and this isn't something you want as it is a tax deductable loan. ie: An offset account is a great place to stash money if you have a loan that isn't tax deductable (the mortgage for the PPoR)

• 

  chumlee on 30/07/2019 - 12:58

  +1

  Great share portfolio. Well done

  If you are worried about a recession, sell half of all your stocks. At least this way you have locked in some profits. I think the market has a few more months of FOMO to go before a correction

  • 

    darz007 on 30/07/2019 - 13:08

    Thank you :)

    I still think the market has a few more months as well, Im just not sure if its as little as one month or as much as 12+ months before things start to go pear shaped. If only I had a crystal ball :P
    I won't sell off all my shares as I don't want to be kicking myself if they end up fairing well. But I do want to ideally sell 50%+ to protect my assets as nearly every single share I own is high growth, high risk.

    • 

      HighAndDry on 30/07/2019 - 16:14

      as nearly every single share I own is high growth, high risk.

      Yeah. Look into hedging. At least with some blue-chip, lower growth stocks, or ideally (imo) some gold which tends to move in the opposite direction to the market.

      Also, some random is negging your comments seemingly no reason (bitter you have money?) lol.

• 

  Duram on 30/07/2019 - 14:06

  +3

  So you've gotten a 100% return over the last two years? maybe you should become a FP instead of seeing one.

  • 

    mrtin on 12/11/2019 - 22:47

    Everyone makes money in an upmarket.

    It's only when the tide goes out where you learn who has been swimming naked

• 

  Cheap Steve on 30/07/2019 - 14:24

  +1

  Sell your shares and pay down your home loan.

  Or

  Hold on to your high PE tech shares to learn a valuable lesson about share market investing when companies with bugger all earnings and stretched valuations hit an economic speed bump.

  Both are very good options.

  • 

    darz007 on 30/07/2019 - 17:36

    Ahaha!
    All in on option 2! :P

• 

  Quagles on 30/07/2019 - 15:35

  +1

  People have been predicting a crash for years. Truth is no one knows. Got to take risks to get ahead. I personally have invested more into US and AU stocks recently as i dont suspect anything but growth next few years. But thats my own opinion. Everyone has one. And barely anyone can predict the stock market accurately. You could go to cash now and miss another 20-50% growth?

  It reminds me of when i bought my house a few years ago. All the advice "dont do it, house market crash happening". My house gone up more then 30% in value even with the recent "slump". Im not in Sydney though.

  • 

    HighAndDry on 30/07/2019 - 16:15

    You could go to cash now and miss another 20-50% growth?

    Not all cash, but OP putting everything into high growth high risk stocks isn't a sustainable long-term strategy, and now that he has a decent balance to work from, there's no need to fly that close to the sun.

  • 

    darz007 on 30/07/2019 - 17:42

    The difference with your above statement about the housing market was during the housing market boom the Australian economy was in a growth period which helped prop up the boom for so long. It also lasted so long due to FOMO and this is exactly what is happening in the Australian Share market with us reaching a new all time share market high yesterday. Also, unlike the property market, when the share market goes through a downturn, it gets hit much harder than property does. There are some serious red flag economic indicators that are now pointing to a very high chance of us already being at the start of one or about to enter a recession. To add to this, Europe is also in the same boat and other countries are also showing signals of a global market recession in the next 1-3 years.

    It might not happen, but I'm hedging my bets it is likely within the next 12 months for AU and 24 months for a global recession.

    Also, I am not going all cash right now, I will watch and wait a bit longer as I do think there is some steam left for it to keep going up over the next couple of months. I just don't know how much longer it has before the train runs out of coal.

    • 

      ilovefullprice on 30/07/2019 - 20:11

      +3

      The stock market crashing every 10 years is ridiculous. We live in very different times right now. The share market had benefited by having Trump. Looking at the quality of Democrat candidates, Trump will likely win the next election, benefiting the share market. If anything, there would probably be some downturn volatility just before the US elections and up again after Trumps re-election, like it or not.

      My general consensus is there won’t be another market crash this time, given also we just had a ‘really big-one’ just 10 years ago.

• 

  Tee Rex Arms on 30/07/2019 - 17:19

  -1

  Move out of your parents basement

  • 

    ozbjunkie on 31/07/2019 - 10:46

    +2

    Negative, if you and family get along, work together for as long as possible to help each other.

    I detect a hint of jealousy. I'm jealous - If I could live with my folks to the benefit of all parties I know I would.

• 

  johnnygolden on 30/07/2019 - 19:56

  If you are now seeking capital preservation, diversify your portfolio across multiple asset classes. Shares do well during periods of growth, long dated treasury bonds in periods of deflation, gold is a hedge against inflation, cash is your best bet during a recession. Buy low cost index funds to keep costs down. Keep saving as much as you can.

• 

  nebula98 on 31/07/2019 - 07:39

  Do you have a falling sell in for your shares ,ie if a share is worth $1.00 you can set a automatically falling sells at say 70 cents so that if the price falls down to 70 cents the stock sell,alow a fair margin for normal share movement. If share goes up a lot adjust falling sell upwards.
  Gold I believe will do very well in the future as cost of mining it is high and some people believe we have reached peak gold production as well as with all the money printing in the USA and China and Russia wanting to get away from buying oil in us dollars .
  In Australia do not forget about the massive amount of superannuation fund for money that needs a home every week…..

• 

  Ven0m on 31/07/2019 - 08:19

  If you think you will want to buy your own home to live in the next couple of years then consider selling the shares. However if you believe you won't need those funds for at least 5 to 7 years then instead diversify the portfolio preferably using listed funds into other asset classes.

  No one is going to be able to predict when markets collapse and as much as you think they might as you say, people were saying the same thing 12 months ago and 12 months before that. Don't try to time the market, think about your objectives and your investment timeframe and adjust your strategy accordingly.

  Certainly it's useful to consider where stock markets are at now and hedging your bets is probably a good idea. But as Peter Lynch once said "more money has been lost by people preparing for a stock crash then money lost during a crash".

• 

  Vivf on 31/07/2019 - 08:59

  Financial advisers are more focused on capital preservation rather than helping you make money from investing/trading. They’ll recommend diversification strategies and look at your insurance situation.

  You are savvy. There’s nothing a financial adviser can tell you that you can’t figure out yourself. Read books on investing like the Ben graham book.

  A piece of advice, you’re lucky that you started in a good period. I started in 2009 through the European crisis period and lost a lot of money as educational expense. It taught me a lot about psychology and risk. You haven’t had that yet, so try and prepare yourself by reading up, learning as much as you can about risk management.

  For tax advice, you should find a really good accountant who’s experienced with diy investors. There are different structures you can set up to make it tax effective e.g setting up a company for trading, or creating a self managed super fund.

  • 

    diceman99 on 31/07/2019 - 14:47

    +1

    Value investing is dead, the stock market has gone crazy. P/E values are showing way overpriced but continue to grow.
    UBER has never made a profit and stocks are/were soaring.
    The Unicorns are taking over. But for how long……

    • 

      ilovefullprice on 31/07/2019 - 14:57

      UBER has never made a profit because of us Ozbargainers?…😁

• 

  MA1970 on 31/07/2019 - 10:31

  when you look at some of the industries are stuffed already (recession, is well & truly upon us, but will get much much worse) ….

  1. all retail, with exception of some online (but many online, are not making any money)

  2. building/developing real estate (despite what media, who earn billions in advertising) says

  3. travel (airlines going broke all over the world & others trying to give away seats below cost in low season)

  4. hospitality or more specific restaurants, that aren't burger joints

  5. Tech that's associated with travel must also be feeling the pinch, as fees dropping
     (feel tech is in trouble, as all above would be paying less for tech)

  Lately have experienced some tech, that is actually slower than old methods. Think the obsession with tech is dying fast.

  it makes you wonder what you can invest in, with any security & with any capital growth in next 5 years

  Feel that anyone who wasn't at least 18 in 1992, has no idea how bad a deep recession can be.

  Those who are cashed up, might do well buying mortgagee in possession real estate, where no reserve auctions. There's going to be a lot more of these auctions in next few years, but you'll probably need a lot of cash or very big deposit before banks will lend you any money.

• 

  menocheapsk8 on 31/07/2019 - 11:33

  +1

  Get a wife/husband and kids. You won't need to worry about where to invest your money as you wont have any. Simple.

  • 

    darz007 on 31/07/2019 - 15:20

    Sounds like someone is projecting their life regrets on to others :P

    • 

      menocheapsk8 on 01/08/2019 - 08:21

      Hahah, just wanted to add some balance to the conversation.

      Impressive effort on your investing so far. As an alternative that hasn't been mentioned, have you considered investing more time/effort/money into your side gig?

• 

  Ven0m on 31/07/2019 - 13:49

  A lot of people tend to comment, "you don't need to see a financial adviser". Now despite the bad press there are plenty of good advisers out there - I'd avoid the big banks and large institutions generally though.

  People assume you need money to invest to see an adviser or they're only going to offer you investment or insurance products. While that's part of what an adviser can do, it shouldn't be the starting point.

  You're looking for information because you know enough to get things done yourself without someone doing it for you but you don't know enough to tell if you're doing the right thing or not, that's where an adviser can help. People on forums like this will give advice or tips based on their own experiences or things they've read but in a lot of cases they will be misinformed opinions.

  Don't devalue good advice, it could save you a hell of lot of money and stress.

  • 

    darz007 on 31/07/2019 - 15:19

    Thanks for this.
    This is the exact type of financial advisor I would want to see If I do see one, it would ideally be someone who can give me advice and a starting point plan on better self managing so I can then take it from there.

    • 

      mrtin on 12/11/2019 - 22:51

      Maybe find an advisor who is willing to spend one hour with you. An hour of power. Ask any question you want ato grt a professional opinion.
      They'll probably charge $300 to $500 or so.
      You won't get personal advice. You hopefully will get good intellectual property and knowledge.

• 

  BuyLowLetsGo on 31/07/2019 - 15:01

  Ever considered including an uncorrelated asset like Bitcoin? ;)

  Avoid the shitcoins however.

  • 

    darz007 on 31/07/2019 - 15:14

    +1

    Actually, already own cryptocurrency, forgot to mention that.

    It was the first ever thing I invested in, bought 1-2K USD worth of different coins in 2014, watched them tank to below $250 in total value, watched them skyrocket to 20K in January, pulled 10K USD out close to the peak to buy myself a second hand convertible - Volkswagen EOS at the start of this year :) + bought more shares, the remaining 10K I diversified into multiple altcoins, it is now worth about 2-3K. Crypto is one hell of a wild ride.

    • 

      BuyLowLetsGo on 31/07/2019 - 15:38

      Nice work. Very admirable for a 26yo to be building such an asset base/income stream!

      One thing that occurred to me when reading your post and replies: I think it's a little inconsistent to be seeking financial investment advice in a forum/site where people are mostly seeking "bargains". No harm in seeing what people think, but it might be worth speaking to people who are tangibly wealthy and have true experience in wealth preservation. Any rich relatives/family members/friends perhaps?

      Also just to clarify and avoid triggering other readers. Not saying you won't get wealthy people here, but I reckon the audience here might have intentions different from your goals (i.e. bargain hunters/spenders vs investors/wealth builders).

      Good luck!

      • 

        darz007 on 31/07/2019 - 16:18

        I am just not in the right circles to get financial advice from my circles.
        Come from a poor to middle class family of mainly tradies and most my friends are super left wing and generally anti capitalism/investing, so they aren't great to go to for financial advice. Im generally the one friends come to when they want to do their taxes or want cryptocurrency advice lol.

        You make a good point, but there is definitely some good intersection of bargain hunters/frugal spenders and investors/wealth builders.
        This is also a forum I am most familar with so I was most comfortable and its convenient enough for me to post this here. + It being Australian advice is a big plus.
        Will take this to another more professional/investment specific forum if I feel the need for more answers/have more questions after this. But I've already got some good advice above that Im looking more in to as starting points.

      • 

        darz007 on 31/07/2019 - 16:21

        In terms of crypto, not quite a lambo or the moon, but good enough :P
        I am very hesitant to put too much money in crypto as timing the market is crucial, otherwise you can see your money go down a lot before it sees the light of day of any reasonable gains again.

• 

  Gelato on 31/07/2019 - 21:35

  Mate glad to know you are doing great. I own a similar value of AUD shares, my plan is to sell down some growth stocks and keep the blue chips.

  I dont think you need a financial advisor at this stage, with so much headwinds in the global economy now, there isnt much to advise in terms of wealth creation. But just my thought, I've never been to a financial advisor. Those free sections I had at previous employer, the financial advisor kept telling different types of insurance available (more for asset/income protection).

• 

  horsome on 01/08/2019 - 00:16

  Mate, at 26 and to be that well invested, I wouldn’t be taking the advice, I would be giving it!

  You should start looking at getting professional help with your wealth however, you can’t google everything on this and forums are full of misinformation.

  Start shopping around for a good accountant who should then have a good reference for a financial advisor (if you need one).

• 

  gyrex on 01/08/2019 - 13:38

  Great work on building a decent investment portfolio. I was in a somewhat similar position to you in 2007 and I could smell the impending global financial crisis in 2008, so I sold my entire portfolio at essentially the peak and once the markets started to stabilise at their bottom, bought the same shares back at an enormous discount thereby effectively doubling and sometimes tripling my equity.

  I'm not sure how many financial advisors would be jumping in to help manage a smaller portfolio so you might need to do this solo but I'd agree with your general sentiment that the global markets and economies are looking destined for recession. Good luck with it, recessions are a goldmine for people who have liquidity.

• 

  Tasmaniac on 01/08/2019 - 23:14

  Put all your savings into Tesla my friend. CNBC are still valueing them as a car company. Easiest money ever.

  A lot of people who just made a quick 20% off the stock still think it's worth around $4000.

  • 

    Tasmaniac on 26/10/2019 - 17:28

    Stock price just went up 20% and it's going to keep going. Happy to remind you in a few more months when it jumps again….

    • 

      Tasmaniac on 15/01/2020 - 08:41

      +2

      More than $500 a share now, that's a 200% increase. If you want to make money now's the Time. Happy to remind you in another few months when the price jumps again….

      • 

        Tasmaniac on 31/01/2020 - 23:07

        +1

        $640 a share now, being compared to Amazon and apple. Been telling everyone this for months. Bear case still $4000.

        • 

          Tasmaniac on 04/02/2020 - 15:46

          @Tasmaniac: $780 now, easiest money ever, people are going to wish they invested in Tesla.

          • 

            Tasmaniac on 05/02/2020 - 02:03

            @Tasmaniac: $900. Market starting to reflect true value now. Wait until Shanghai takes off….

            • 

              Tasmaniac on 11/06/2020 - 16:18

              @Tasmaniac: Tesla at $1025 now and the Shanghai factory hasn't even taken off. I don't think people realise how much this company is going to be worth.

              • 

                Tasmaniac on 03/07/2020 - 13:11

                @Tasmaniac: $1200 now.

                • 

                  Tasmaniac on 23/08/2020 - 20:04

                  -1

                  @Tasmaniac: $2000 now. Lets just take a minute to acknowledge the fact I gave you the best financial advice you could of possibly got. Next time you can pay me $3000 to write an SOA.

                  • 

                    ilovefullprice on 23/08/2020 - 20:13

                    +1

                    @Tasmaniac: The boom is going to end or slow down when Biden wins. Sell before election, so can invest in other higher yielding assets.

      • 

        gyrex on 31/01/2020 - 23:16

        I'm not sure you understand how percentages work. When a price doubles, it's represented by an increase of 100%. A 200% increase represents an initial price which has tripled. Also, it's spelt *valuing.

        Good luck with Tesla.

        • 

          Tasmaniac on 01/02/2020 - 00:28

          @gyrex: The price was at $180 when I first replied. Thanks for the spell check though, I think.

          • 

            passwordistaco on 01/02/2020 - 00:44

            @Tasmaniac: What’s the easiest/cost effective way to invest in Tesla? Not familiar with investing in US shares from Aus

            • 

              Tasmaniac on 01/02/2020 - 00:53

              @passwordistaco: Probably through commsec. You'd need to set up a international trading account though. There was a recent deal here somewhere from NAB to.

              • 

                passwordistaco on 01/02/2020 - 01:05

                +1

                @Tasmaniac: I see. I’m with CommSec at the moment. So I assume intl trading requires different access? I’ll check. Thanks mate

            • 

              Solifugae on 11/02/2020 - 22:09

              +1

              @passwordistaco: I use Stake but they are changing their fees in July. Until now, I would have recommended them.
              If you already have CommSec, that’s probably easiest but won’t be cheapest.

          • 

            gyrex on 01/02/2020 - 01:18

            @Tasmaniac: Tesla closed at $233 on 01/08/19. You claimed a 200% increase when Tesla hit $500 which is ~100% increase from $233. A 200% increase would be ~$700.

            It's a common mistake to make with percentage increases.

            • 

              Tasmaniac on 01/02/2020 - 12:21

              @gyrex: It was at or around $200 throughout the month of August and up 20% from the months before. I think your missing the point though, Tesla is a good way to make money atm.

• 

  Meho2026 on 03/08/2019 - 15:42

  Far out
  You should be giving us financial advice not the other way around
  Maybe consider buying ETOs with a long expiry against your shares. That would be like buying insurance against a drop in share price giving you the right (but not obligation) to sell the shares at a predetermined price.
  Take what everyone on here says with a pinch of salt

• 

  Geekomatic on 04/08/2019 - 01:09

  RE: money in the bank/super:

  Turdy passed a law saying that the banks can rob your savings/super to bail them out.

  https://cec.cecaust.com.au/pubs/pdfs/flyer/201800222_Governm…

• 

  Miata9 on 05/08/2019 - 14:57

  hi mate.

  Good to see your strong financial position.

  My situation is a bit similar to urs. I am an international people, married，28 yrs old earning 80k gross. No financial stress except living cost and mortgage(80% LVR) in Brisbane. My spouse has stable income so we together are able to build up 30k cash every year.

  I agree with your opinon that in recession investors should buy bargain properties. for exapmle recently i saw some 480k townhouse in 2015 were asking 380k now. Those may be of interest of yours.

  In terms of investments in shares, even tough i am working for international bank i dont see any rationale to keep high exposure on them as during recession the uncertainty is there.

  On the other hand since AUD is to depreciate further, I have spent my money on major spendings that requires to be paid within 2 years. For instance buying fixed assets for the small business and paying for renovation etc.

  All in all, my suggestion is:

  1. keep searching for a good financial planner but no need to be hurry as we are in recession btw.

  2. Look for bargain buys in properties.

  3. reduce your exposure to various shares portfolio. The major recession is yet to come but due as early as end of the year.

  4. spend necessary money now as you will end up paying higher next year.

• 

  Solifugae on 04/11/2019 - 14:13

  What did you end up doing? I'm also starting to consider selling down and I'm keeping a close eye on my investments for signs.

  Problem is, nearly everything looks over-extended but "Markets can remain irrational a lot longer than you and I can remain solvent." - not that I'm suggesting shorting anything, mind!

• 

  negger on 01/02/2020 - 10:59

  You are most likely doing a lot better than most including the reputable advisers for your age.

  You don't seem to have too much money in shares and need only one or two multi baggers out of the lot. Perhaps you should consider a more balanced portfolio and buy few that are not as hyped up(value investing or so). I obviously have no idea if you picked the current lot at the peak or not. In any case, don't buy at high and sell at low as most of your holdings should be fine over the long run.

  • 

    gyrex on 01/02/2020 - 12:35

    "don't buy at high and sell at low"

    Sage advice not many people think of. /s

• 

  anglais on 02/02/2020 - 12:26

  +2

  I'm no guru but 2017 through today is absolutely not the norm in stock market performance.

  This period has been ridiculous so don't make the mistake of thinking you've picked winning stocks.

  Not trying to be offensive, just trying to urge caution.

  If you were genuinely sure of a recession then you would move into 2% cash account and have your wad ready to blow once some value is shaved off the market.

  As I see it if Trump gets in for another term then we can expect many more years of ludicrous returns. His goal is to make billions and then move to cash after his term.

  If he loses the market is cooked.

• 

  mrtin on 24/02/2020 - 22:20

  So did you end up selling up?

• 

  noskich on 06/07/2020 - 00:02

  You cannot get a FHO grant in NSW if you already own an investment property.