Yield on initial purchase price,
if based on current bank vals
1.) 5.74%
2.) 6.50%
3.) 5.77%
I'll probably be looking @ going interstate now. Land tax is -_-;;
Continuing to grow - Ideas
- Thread starter Ridin-High
- Start date
Yield on initial purchase price,
if based on current bank vals
1.) 5.74%
2.) 6.50%
3.) 5.77%
I'll probably be looking @ going interstate now. Land tax is -_-;;
Thanks RH,
I was just thinking of Rixters posts here with regards to context (pardon the spelling of Redwing...he was on the bubbly and celebrating after all
)Just another update, would like to hear some feedback.
- Difficult to obtain further finance @ 90% LVR, broker can get 80%.
- Have set my income goals at $55,000 after tax in todays money and indexed.
- Time frame 12 Yrs from now
- Venturing back into the shares field after exiting a few months prior. I am using a different vechile within the shares realm (Listed investment companys otherwise known as LICs which i'll explain further why below)
- Will be Dollar cost averaging back into the market (monthly)
- Again reminded of why Cash buffer/liquid investments are important (defaulting Resi tenant to the tune of $5,000)
Now in relation to re-entering the share market, before i was leveraging hard with margin loan, if people read a few pages back i exited the market with a small profit. As one of the forum members said my problem wasn't the share market, it was the leverage i was using and this was causing problems with sleeping etc and wasn't healthy.
I have been given this advice before from the share market guru's on the forum as a good passive exposure to shares is Dollar cost average into LIC's (giving exposure to various companys rather then one, thus minizing risk).... but as humans we usually insist on learning the hard way.
I've choosen to invest 6k Per month into some of the larger LIC's (AFI/ARG and choosing which one depending on discount to NTA) and at the moment not margin lending, but if i was to do so, i would keep the gearing ratio very low (think 35% max).
I think one of the keys of this investing game 'time in the game'. The people who get thrown down a few runks of the ladder are those who take excessive risk.
I've planned my goals (55k P.A Income indexed), got a time frame (12yrs), choosen the vechiles (Resi property, Shares).
Regards,
RH
- Difficult to obtain further finance @ 90% LVR, broker can get 80%.
- Have set my income goals at $55,000 after tax in todays money and indexed.
- Time frame 12 Yrs from now
- Venturing back into the shares field after exiting a few months prior. I am using a different vechile within the shares realm (Listed investment companys otherwise known as LICs which i'll explain further why below)
- Will be Dollar cost averaging back into the market (monthly)
- Again reminded of why Cash buffer/liquid investments are important (defaulting Resi tenant to the tune of $5,000)
Now in relation to re-entering the share market, before i was leveraging hard with margin loan, if people read a few pages back i exited the market with a small profit. As one of the forum members said my problem wasn't the share market, it was the leverage i was using and this was causing problems with sleeping etc and wasn't healthy.
I have been given this advice before from the share market guru's on the forum as a good passive exposure to shares is Dollar cost average into LIC's (giving exposure to various companys rather then one, thus minizing risk).... but as humans we usually insist on learning the hard way.
I've choosen to invest 6k Per month into some of the larger LIC's (AFI/ARG and choosing which one depending on discount to NTA) and at the moment not margin lending, but if i was to do so, i would keep the gearing ratio very low (think 35% max).
I think one of the keys of this investing game 'time in the game'. The people who get thrown down a few runks of the ladder are those who take excessive risk.
I've planned my goals (55k P.A Income indexed), got a time frame (12yrs), choosen the vechiles (Resi property, Shares).
Regards,
RH
Cheers Oracle.
Also wanted to get peoples opinion about the dollar cost average. I currently have 140k and at 6k Per month would take 2yrs to invest. The reason why i am DCA is to minimize the chance of picking the top of the market.
Wondering if people have any ideas RE the amount im investing and the spacing of time (should do each month or 6 months, yearly etc)
Regards,
RH
Also wanted to get peoples opinion about the dollar cost average. I currently have 140k and at 6k Per month would take 2yrs to invest. The reason why i am DCA is to minimize the chance of picking the top of the market.
Wondering if people have any ideas RE the amount im investing and the spacing of time (should do each month or 6 months, yearly etc)
Regards,
RH
RH, I'm not going to be much help here I'm sorry.
Glad to hear you have refreshed and reset your goals. That's terrific. DCA is something I often think about but am hopeless at actually achieving. I just think of those fat dividend check's I'm missing out on and just plonk all my money in there. There are plenty of strong yields out there, does that prove that the stock couldn't tank too much? I don't know but if the bluechips are paying 5% fully franked then that's good to me being prepared to hold long term. sorry for the lack of help
Gools
Glad to hear you have refreshed and reset your goals. That's terrific. DCA is something I often think about but am hopeless at actually achieving. I just think of those fat dividend check's I'm missing out on and just plonk all my money in there. There are plenty of strong yields out there, does that prove that the stock couldn't tank too much? I don't know but if the bluechips are paying 5% fully franked then that's good to me being prepared to hold long term. sorry for the lack of help
Gools
There is nothing wrong with DCA. Only variation I can suggest is say you want to invest once a month. Try to have a plan where instead of $6K per month you start off with say $6K and then next month if the market is higher then you invest $4K if the market is lower you invest $8K.
This way I believe in 2 years times you will buy more when market is lower then the previous month and less when market is higher then the previous month.
You can change the number as you wish to suit you, but the important thing is to stick to the plan. Chopping and changing will impact your overall returns.
Cheers,
Oracle.
If you want another alternative, how about the UK stock market?
It's considered to be reasonably valued (but do your own research first), but the pound is currently at record lows against the Australian dollar. (Currently $1.60 to £1, historically it was $2.5.)
Why not transfer some cash that you're not going to need for a few years over to Britain, and buy the cheapest FTSE 100 Index Tracker you can find? (Fidelity used to have the lowest fees.) Growth might be slow for a few years, but if the Pound rebounds then you'll be 30% up.
It's considered to be reasonably valued (but do your own research first), but the pound is currently at record lows against the Australian dollar. (Currently $1.60 to £1, historically it was $2.5.)
Why not transfer some cash that you're not going to need for a few years over to Britain, and buy the cheapest FTSE 100 Index Tracker you can find? (Fidelity used to have the lowest fees.) Growth might be slow for a few years, but if the Pound rebounds then you'll be 30% up.
Thanks for the feedback Oracle, seems like a good plan. The stock that i've purchased recently was AFIC after it went ex div. I'm not sure if my calculations are correct (i'll post them below to get feedback) but i believe it may be trading at a small discount to asset backing.
- AFI NTA 31/1/2011 - $4.90 (before $0.08 dividend) so if you are calculating ex-dividend NTA would be $4.82?
- XFL (ASX 50 index code, which the stocks in AFIC would roughly replicate) closed at 4,722 on 31/01/2011 and closed at 4,872 on 9/02/11. This represents a 3.07% increase.
- I purchased stocks in AFIC @ 4.83
- If NTA was $4.82 (ex div) and has say roughly increased inline with the XFL by 3.07% NTA would be around the $4.96. So i purchased at a small discount to buying the underlying stocks directly?
Can someone have a quick bo-peep at the figures and give me some advice.
@ Graemsay, i haven't given much consideration at the moment to international equities... i will have to learn and understand better the currency risk first... hopefully in time i can gain an understanding and appreciation for them (Int equitys)
- AFI NTA 31/1/2011 - $4.90 (before $0.08 dividend) so if you are calculating ex-dividend NTA would be $4.82?
- XFL (ASX 50 index code, which the stocks in AFIC would roughly replicate) closed at 4,722 on 31/01/2011 and closed at 4,872 on 9/02/11. This represents a 3.07% increase.
- I purchased stocks in AFIC @ 4.83
- If NTA was $4.82 (ex div) and has say roughly increased inline with the XFL by 3.07% NTA would be around the $4.96. So i purchased at a small discount to buying the underlying stocks directly?
Can someone have a quick bo-peep at the figures and give me some advice.
@ Graemsay, i haven't given much consideration at the moment to international equities... i will have to learn and understand better the currency risk first... hopefully in time i can gain an understanding and appreciation for them (Int equitys)
