The Silence is Deafening ...Disappointed ... re cash bonds

Hello, SC,
Thanks for your response to my queries.
I guess, in my case, and at this stage, I'm more concerned with the SAFETY of my investment in Managed Funds, and whilst MAXIMIZING my returns as you advise is important, it is secondary to my SANF....at this stage, anyway.
I have been very happy with Navra returns to date, and realize I possibly could have done better using different Fund Managers using variations of investment styles.
Also, SC, are you saying that it's not such an issue of any Fund falling over, more likely the companies the fund invests in?
And if the fund I invest in ( eg Navra ) places my money over a range of Blue Chip Australian companies...the top companies in Australia....would you say that was comparably safe, compared to some Small caps, or International shares, or some other possibly-higher yield shares?
My main concern at this stage is to invest for 'safety-first' in the share market, and as this is all a new experience for me, a Fund Manager is perhaps the only way to go until I gain more experience and knowledge of shares in general.
But the big question is which one (or 2 or 3 ...) :confused:
Thanks once again, SC
Bill
 
Seech

The silence may be deafening because perhaps not many forumites have actually tried cash bonds.

I understand the theory, and can see the advantages. But I suspect I'm with a majority who have not (yet?) been in a position to use them.
 
Bill

I'm not in a postion to recommend managed funds. I don't have managed funds at this stage , though I anticipate I will be a reasonable amount in to managed funds in about 9-12 months. At this stage I havn't done research into which specific funds I'll be investing in , and besides that I'm not a financial adviser :eek: .

Also I have a different aim to you. My aim is to maximise my return so I'll be looking at gearing into funds that have a good track record of higher than average returns.

If I was only concerned about " safe investments" I wouldn't be on this forum. The last bit of " safe advice " I had was to pay of my mortgage ( given around 1996 when I talked to a financial advisor about investing in property ) . Unfortunately it took about four years before I realised that , that safe advice had not been the best advice.

See Change
 
geoffw said:
Seech

The silence may be deafening because perhaps not many forumites have actually tried cash bonds.

I understand the theory, and can see the advantages. But I suspect I'm with a majority who have not (yet?) been in a position to use them.
Click to expand...

ahhhh..... :(

So all those people over the last couple of years who been pushing their use when ever the question of servicability has been raised having been suggesting people should use something that they havn't actually done them selves....???

mmmm..... interesting

I actually know two forumites who have used them in a situation earlier on in the current cycle when there was a high expectation of good capital growth in the short to medium term, to get over a short term problem with servicablity . I know at least one of those cashed in the cash bond once they were past that particular road block. I thought that was a good way to use a cash bond.

That's not the senario that worries me . It's the whole structure thing , of LVR's at 80 % , with cash bonds to support servicablity and living off equity in particular at retirement,that concerns me.

See Change
 
see_change said:
ahhhh..... :(

So all those people over the last couple of years who been pushing their use when ever the question of servicability has been raised having been suggesting people should use something that they havn't actually done them selves....???

mmmm..... interesting

See Change
Click to expand...
Perhaps not everybody has had a problem with servicibility. I haven't had a problem myself up until now- and even now, it's only because I cannot show three years of business income. But that would not stop me suggesting that somebody investigate the possibility.
 
see_change said:
ahhhh..... :(

So all those people over the last couple of years who been pushing their use when ever the question of servicability has been raised having been suggesting people should use something that they havn't actually done them selves....???

mmmm..... interesting

See Change
Click to expand...

Hi SC.

I like the idea of Lo Docs for certain circumstances too........I haven't personally used them........but I understand how they work.

The truth is out there........but there IS no conspiracy. :D :D




:)
 
see_change said:
So all those people over the last couple of years who been pushing their use when ever the question of servicability has been raised having been suggesting people should use something that they havn't actually done them selves....???
Click to expand...
I've been wondering about this issue since you've raised it.

Cashbonds have been useful to some people I know- possibily the forumites you mentioned. It was a tool which enabled some people to progress further. Some of those people have moved on.

I've heard about some other tools. Lo docs are the most obvious- though I've also heard about people providing an untouchable account which the bank can draw on in the event of an unpaid repayment. There's probably other tools available- we've just heard a lot about one particular tool in this forum.

I don't have a problem with people suggesting things they have not tried themselves. I suspect doctors do this.
 
Doctors sure do. And amongst the discussion my contribution (albiet meagre - {can't even spell}) is for cash bonds. I feel a bit of a heal as my question was not intended to open a spat but just a query. As it is, Maquarie bank accepts CB's.
Living off equity - not scary at all. Wages, CGT, tax is scary. I believe in the theory that if I earn a dollar, it is not only my right but obligation to use it most effectively. This allows me to expand as a person. SO from that perspective and at this time with all the facts in front of me - loosing 7 cents in the dollar is better than 30 cents. Also I am not a static entity. I not only live off my equity but I expand it. I dont believe my glass is half empty, it is half full - ie my net equity, my real wealth is growing. It grows passively with no input from me, but I do add fertiliser and proactively create more wealth.
It is just a different way of doing things. I have a colleague who wont look at property investing because of blah blah blah. Well I am not into cash flow positive property as my primary exit strategy so I am just as guilty of not doing something based on my blah blah blah. And the problem is? Nothing. It is just purley different. I think one of the primary things is to be flexable in your strategy. What works today works. Worry about tommorow when the landscape changes.
I heard an interesting question - what would you do if you knew you were going to die in 24hrs? I am an ambo, and believe me it happens. Time is shorter than you think and today is here today.
Meanwhile, I'm packing the van and going to Straddie fishing!
 
Hi

Now I don't mean to be critical, but...

I had hoped that Steve would answer the Cash Bond questions quickly, even with a "yes some banks have an issue with them but these .......... banks don't and will continue to support them"

I haven't seen Steve talk and I had been considering joining Invested but at the moment I don't see the value.

I would be paying for a service which Somersoft already provide for free and critical answers and discussions which should be answered in Invested quickly (especially as people are paying for it) are discussed on Somersoft.

Just my 2cents.

Happy to be corrected.
 
geoffw said:
I don't have a problem with people suggesting things they have not tried themselves. I suspect doctors do this.
Click to expand...

This may well be true , but for a Doctor to recommend something , they usually have scientific evidence to show that what they're recommending works, and even then they don't always get things right.

They tend not to base treament on the basis of back testing.

See Change
 
Cheeks said:
Now I don't mean to be critical, but...

I had hoped that Steve would answer the Cash Bond questions quickly, even with a "yes some banks have an issue with them but these .......... banks don't and will continue to support them"

I haven't seen Steve talk and I had been considering joining Invested but at the moment I don't see the value.

I would be paying for a service which Somersoft already provide for free and critical answers and discussions which should be answered in Invested quickly (especially as people are paying for it) are discussed on Somersoft.

Just my 2cents.

Happy to be corrected.
Click to expand...

Given that Steve doesn't generally post on Somersoft anymore - I suggest that if you have questions about his methods, you either a) post on InvestEd, or b) call Steve and ask his opinion yourself - he's always happy to talk to people.

You aren't going to get an answer here on Somersoft.

Steve has been really busy of late with a lot of stuff, but is also currently working on writing a series of articles on "Living on Equity" (last I heard it was 5 articles approaching 10 pages each). These will be published on InvestEd.
 
my point was that there is no indication of this effort from steve on Invested - some comment should be made to indicate the current situation.

If I pay for a service I don't expect to be left hanging on such a critcal question.

I'm not getting an answer on Invested either
 
So call Steve then and get an answer that way if it's so important to you ?

Steve is fully committed to InvestEd ... but unfortunately other issues (both business and personal) have made it difficult for him to commit time to it in the last couple of weeks as he would normally do.

When I spoke to him on Monday night, Steve was very apologetic for not spending more time, but is putting in a lot of effort behind the scenes to add more value at the moment. I expect things to settle down a bit shortly and Steve should be back to his normal self. The timing of these events that are taking Steve away from the things he would much rather be doing has been unfortunate with the launch of InvestEd last month, but InvestEd is about much more than just Steve anyway.

So please don't read anything into the lack of comment by Steve about cashbonds - I'm sure he's not avoiding the subject, and will answer when he has a chance to do so.
 
You must log in or register to reply here.

Similar threads

see_change
Macrobusiness Bears -well meaning but ignores reality
Replies
9
Views
3K
see_change
see_change
The Y-man
The Jingo Interview
Replies
1
Views
7K
The Y-man
The Y-man
I
Fantastic article by Steve Keen
2
Replies
28
Views
4K
locko24
locko24
L
Help! Advice needed regarding eviction and rental arrears
2 3 4
Replies
64
Views
21K
Kath Russell
K
Ruby
The Player Interview
Replies
0
Views
11K
Ruby
Ruby
Back
Top