My Investment Plan

[Up Up & Away]

Hi All/Anyone

I've been questioned a few time by family and friends about how and when we invest. After spending time explaining it to people over and over again I've tried to put it down on paper (excel anyway), the link below shows my 1st attempt

http://users.tpg.com.au/lcfc//investment03.xls

My stratagy is basically a mix between Spann, Navra and a few other people I have read about over the years.

It's very simple but I would value opinions of the forum, perhaps it'll help me improve my investing

 

[The Y-man]

It's very simple but I would value opinions of the forum, perhaps it'll help me improve my investing

It err...... looks very complicated...... sorry, I have a very simple mind....

Cheers,

The Y-man

 

[Dazz]

....I always find the best place to start is to know exactly where you stand right now. No point charging off in a direction if you aren't where you think you are in the first place.

Where are you now ?? This will dictate what strategies you employ IMO.

If you are just starting out, I reckon all of the fancy tools may not be necessary for your toolbag just yet. Maybe start with a hammer and a screwdriver and go from there, start building and see where it takes you.

Take comfort in the fact that as you work your plan, the vast majority of people change their tactics, especially as something bigger and better comes along, or you stumble across something that you had no idea about at the start and no one mentioned.

Above all else, see a registered financial planner for truly independent advice and have everything vetted by a registered solicitor, they always have you best interests at heart.

 

[WillG]

Lots of pictures. What are they trying to show ?

Is it possible to summarise it in a few dot points like ...

Manage cashflow by ...
Buy growth investments when ...
Keep LVR in target range of xx by ...
Manage servicability by ...


I read your objective as being cashflow positive providing a 'sustainable income'. Can you expand on this ?

I'm sure the answers are there but are not clear to me. Sorry

 

[alexlee]

Very pretty. Not to sound harsh but what have you actually done in terms of investing? Pretty business plans are a dime a dozen. What actions have you actually taken?
Alex

 

[alexlee]

UU&A, there's the idea of an 'elevator pitch' in business. That is, you have to be able to present your business plan / idea to someone you corner in an elevator.

It really shouldn't be this complex: my eyes started glazing over when I opened your spreadsheet, and I'm used to reading complex spreadsheets.

You need something short, punchy and easy to remember. For yourself as well as other people.

e.g.

Short term (<12 months):
save 50% of salary
buy PPOR


Medium term (3-5 years):
Buy shares with good income and decent capital growth
Buy below-median properties with redevelopment / reno potential


Longer term (>3-5 years):
Start development business

Alex

 

[gooram]

Could your strategy be summarised by:

1. To use equity in property to buy more property and income producing shares
2. To use income generated from shares to support negatively geared properties.
3. When enough growth has occurred, goto step 1.

 

[Highlygeared]

more importantly, ive drawn up spreadsheets/notes of how many properties i want to have by when and ideal mix of properties/shares etc. the one spreadsheet/bible i have now which is a beast of a spreadsheet combining elements of self created PIAA SW and share portfolio tracking etc essentially charts the path to financial freedom. u dont need to be a spreadsheet brainiac to create something like this but you have to ok with excel and understand concepts like discounting etc.

enough ranting, bottom line is create a wealth plan that step by step shows how and what you can achieve by when given the amount of income, estimated growth rates in prices, rent etc. that would be more helpful but youve made a start on a plan which is better than nothing.

 

[Glebe]

That's the prettiest damn spreadsheet I've ever seen.

Too high level for my liking though. Get deeper into the numbers

 

[ermen]

Alt T , O

Alt+ G

That will make the spreadsheet look better...

 

[addbe]

when i was downloading the file i thought wow, this dude really got some serious work in it cos the size of the file weights pretty heavy...

i think by all means just get started. i find myself actrually correcting my decisions all the time, for a better course. i learned a lot by doing rather than thinking.

 

[jingo]

Hi Up Up and Away,

I liked the spreadsheet. I think it is good to brainstorm in this way. I like your idea of drawing equity out of your IPs to invest in managed funds and shares.

Will look forward to hearing how it all goes.

Regards Jason.

 

[HandyAndy888]

Hmm....I think while the graph may initially appear pretty, I have a few issues with it...for example some of your "income" statements are much more indicative of "growth". Also, what are mf shares? How does investing in shares increase servicability? Stating a proces to be automatic is great, but how will this occur? The bottom right scales, are they refering to positive and negative gearing? If so, why balanced? Why not cf+ or negative geared? IMO, I think you need to work on that cycle in the middle...it has potential to be a powerful startegic tool....but it must be developed a lot further....I like your idea of trying to put it all on one page, it gives a clear and consise picture of the "big picture".