$10k to Invest in Shares

I have about $10K in my bank account that I have saved for my child from government FTBs received for a few months.
Instead of using them to pay off mortgage or other living costs I decided to invest in share and give him back when he needs seed money or education say in 10-15 years?
I don't expect it to be a multibagger but just don't know to put in saving account with no to little growth.

So considering dividend (DRP) and future growth which share do you recommend to put the money in?
I am thinking of FlightCentre (a bit risky but have rooms to grow in future) or NAB (for safety and dividend).

Comments

  • Might be a bit late to jump on Game Stop.

    • +2

      Buy the dip

      • Diamond hands!

  • +2

    Airtasker (ART)

    • I’m already in (using my own fund).

    • +1

      It's going down from day 1

  • Both are super risky stocks because they both rely on past being reflective of the future.

    We don't know if covid will continue and morph into something similar to influenza. If it does then the whole airline industry will likely lose margin and the travel agents will no longer be paid commission (more likely than the airline going bankrupt).

    NAB is exposed to the housing market and jobkeeper has officially stopped with no possibility of an extension.

  • +16

    Just chuck in VDHG

    • +4

      Or DHHF if you don't want bonds.

  • -1

    A8G

  • +3

    If you want something "set and forget" the easiest way is to buy an ETF or LIC. Most other stocks will take at least some time to check and manage from time to time.

    • +2

      I made some good gains in early buys of BAT and BNB and LTC. But considering all the time i spent watching charts, reddit, news, twitter, I'm not so sure I'm ahead when i factor in all the time and effort..

  • +2

    AFIC

  • You've spelled my name wrong, but 5k for starters and I'll feel better…

  • I wouldn't recommend putting shares in Flight Centre; didn't they have to close a whole bunch of stores last year?

    Afterpay seems to doing quite well after a low of ~$8 only a year ago …

  • Spaceship also seems to be a popular option here.

  • Cant believe flight centre still trading so high.

    Id just go into VDHG unless you're out for gainnnssss

    I personally am just buying BNB whenever it dips below $300. Yes in before the its not deCENtRAliSEDddD

  • Don't forget if you buy shares then they will need to be in your name and you will be liable for the tax on dividends and capital gains

  • +1

    vdhg

  • DLC

  • NTO

  • +1

    aren't vanguard EFT's good for small investors that don't know much about the market? That's what I'm thinking of until I get enough for a home deposit.

  • +1

    DW8

    • My fave company. In since $0.011 ❤️

      • Wow….that's massive….wish I knew this stock 2 months back….I only came to know via asx bets….

  • +2

    I wouldn't suggest doing that, your putting all your eggs in one basket. You have 10-15 years to grow this investment, which is a decent amount of time.

    As many have mentioned here, I would say a ETF is a good starting point. This is going to be the boring answer, but you need to do your own research.

    Have a look at Rask, I think they have very good learning material. You don't need to sign up to the paid courses or anything, just look at the free ones and have a listen to their podcast. This should give you enough info to make a decision that's best for you

    You can start with these for example:

    https://education.rask.com.au/courses/shares-101/
    https://education.rask.com.au/courses/etf-course/

  • Put it in your super.

    Or Vanguard VAS etf

  • VAS or VDHG

    • I can find an arguably better alternative for every Vanguard ETF out there . Wonder why I hear only about Vanguard mostly on these forums?

      • +2

        Please do share

      • Low fees, bare feet, whats not to love?

        • Would you prefer low fees or better performance?. I found some of the Van Eck's international ETFs much better than VGS as an example

  • +1

    Up Dog
    It's a very exciting new business

  • Another vote for vdhg
    Set it, dividend reinvestment, forget it, and hope :)

  • A diversified portfolio or an ETF is the only way to go. The next 15 years could be very rocky or very profitable due to the recent turmoil in the world. There is magic money being made out of thin air by the RBA and everybody is trying to invest in the next best thing. There will be a price to pay some time. Taxing the rich will most likely be more acceptable over time, this may include higher capital gains tax. You would need to set and forget it for probably at least 10 years to avoid this. It’s not as simple as you may think. This is no place to get advice. Go back and read the posts from March and April on here where there was panic and mayhem to avoid jumping onto random recommendations. Also what you do may one day influence decisions your son makes when he has a lazy $X000 to invest.

  • Why are you just considering shares? There are much better investments out there apart from shares and property. In fact the best performing asset in the last 10 years is not shares or property.

  • Since it's not your money, and you're asking the question (hence assuming limited knowledge of shares), I'd say choose an LIC, such as AFI, ARG, which offer DRP, occasional SPP, diversification, steady dividends, and relatively low volatility. Boring but safer for your child's money. Assuming you won't need the money for at least 5 years - if so, put in mortgage offset, don't risk it.

  • Just buy an ounce of gold - engrave their name. Save till they reach 21.

    Spend the rest on yourself

  • You should ask yourself how you would feel if the market crashes the day after you buy into it.

  • I suggest IFL, the share price is stable, and dividend return is good
    https://www2.asx.com.au/markets/company/IFL

  • +1

    Barefoot's Idiot Grandson portfolio:
    VAS - 75%
    VEU - 15%
    VTS - 10%

    https://www.google.com/amp/s/amp.reddit.com/r/fiaustralia/co...

  • What about Crypto currency, put it into Theta.

  • A staple like woolworthes or Coles, it’s hard to imagine either of them going bust.

    Either that or just drop 2k in 5 of the top 10 or 20.

  • open few basket

    1) crypto
    2) shares
    3)spaceship

  • AFI
    ARG
    MLT
    WAM

    Pick 2.

    Don’t touch individual stocks or you’ll be talking to one disappointed kid!

  • I used to have investments in managed funds as well as direct shares. With the managed funds I'd get a tax information pack at the end of the year which made tax time easier. here would always be a capital gains component to the earnings as the fund bought and sold shares during the year.

    Is this the case with EFTs and LICs too? Do you pay capital gains each year even if you haven't sold holdings in the EFT/LIC?

    And do they provide tax info like managed funds do (did), or just dividend statements like direct shares?

  • What about Hive Blockchain?

  • Why don't you send the money to an overseas bank account which provides a better interest rate.. ?

  • Hey guys, I also had $12k to invest. I just put it in VDHG (popular Aussie investing :D)

    Your views on my not-so-unique investment option?

    Thanks.

    • -3

      FOMO $12,000 in on VDHG and asking about it afterwards sounds like a plan.

      Keep your phone charged because you'll be checking the price multiple times every day.

      • I don't check on daily basis. I just want an opinion from others. You don't have to be ignorant.

  • Blue chips are on special. Get them while they're red hot.

    As it happened: ASX drops 2 per cent as banks slide
    By Emma Koehn
    Updated October 1, 2021 — 5.01pmfirst published at 8.48am
    SUMMARY
    ASX200 finished 2 per cent lower to 7185.5.
    The big four banks each finished the session 2 per cent or more lower, BHP lost 2 per cent.
    Travel and gold stocks saw modest wins as PM revealed reopening plan.
    https://www.smh.com.au/business/markets/asx-to-plunge-again-...