Hi, does anyone have any good resources or knowledge to how to start investing? I've tried youtube but most I can look for is MLM schemes selling courses.
I tried reading barefoot investor but couldn't get the ground up and running. Any ideas or leads appreciated.
Barefoot investor for kids is simpler
It doesnt get any more 'barefoot" than this.
Start with some share trusts and listed property trusts.
Here are the Top performing investment funds:
https://www.investsmart.com.au/managed-funds/top-funds
here are the top listed property trusts which will go off like a bomb once interest rates start falling:
https://blog.stockspot.com.au/best-property-etf/
Once you have enough for a deposit on a property, go there ASAP!
Download Sportsbet and thank me later.
That is spending money, not investing
I wouldn't even call it spending.
Betting…
You gotta spend money to make money, m8
"Chances are you are going to lose"
Don't you love that one ?
If barefoot investor was too much for you, just put your cash in a term deposit. Thank me later.
term deposit
High interest savings account, that doesn't need a monthly top up
https://www.ozbargain.com.au/node/871466
With interest rates expected to drop within the next 12 months a term deposit is a better bet right now because you can lock 4.5%+ for the next 3-5 years.
sure, OP can put a portion of their money in a term deposit (rainy day fund). Putting all/most of it in TD would limit their investing opportunity.
I tried reading barefoot investor but couldn't get the ground up and running
As above, what was complex they you couldn't grasp? Read it again, then read it again.
Any other info source will either be more complex or more likely to cost you more than it benefits you.
Start with the basics
- bad debts, pay them off, highest interest first.
- high interest savings account, save enough for emergency fund
- super, max out yearly concessional contributions
- ETFs, broad market diversified and stick to regular ongoing buys (eg every 'x' weeks buy '$y' of dhff or 70/30 vgs/vas or any other similarly often recommended diversified buying options)
No point "investing" if you have bad debt (eg credit card, car loans etc), mortgage would be next but once you've made a sizeable dent in your mortgage items like additional super contributions or other investments are options to look at.
Anywhere but not ozb
too late, I created a SMSF and put everything into crypto.
Your way better than some others here, collecting eneloops, sdcards, powerbank and portable fans and expired food from azwarehouse
Don’t forget torches, I have about a dozen in my collection now
Invest in yourself.
Investopedia is a one stop shop and probably the only site you'll need to start your journey.
But as others have said, Barefoot really is your beginner, beginner level. Best to get your head wrapped around Barefoot concepts first like debt consolidation, HISA, superannuation (including consolidation if required), buckets for bills and savings, rainy day funds, etc. Then once you're across all of that, dive in to heavier subject matter from Investopedia.
Instructions unclear, it says you're my father?
Patience grasshopper, you are not yet worthy
I would highly recommend spaceship and start an investment plan. It's like set and forget and you don't have to worry about any specific shares.
It's like set and forget and you don't have to worry about any specific shares.
managed funds means higher fees.
You can get equally 'set and forget' fractional share investing for unmanaged index tracking funds directly via places like vanguard or betashares, and invest in diversified ETF options with lower fees and no minimum buy amounts.
Can you please explain the same possibly with some data/figures? I always get this argument but don't quite understand it when I run my own numbers.
There are mainly 2 types of fees , admin fees and fund management fees.
I don't really care about the fund management fees as they get reflected in the annualized return. At the end of the day any fund which consistently gives better NET annualized return is better. Admin fees however is extra cost
Now, If I look at the VAS ETF performance (https://www.investsmart.com.au/shares/asx-vas/vanguard-austr…) and Raiz (https://raizinvest.com.au/blog/raiz-portfolio-performance-fo…)
https://www.spaceship.com.au/voyager/universe/
https://www.spaceship.com.au/voyager/origin/
VAS ETF: 5 year annualized return: 8.31%
Spaceship Universe: 6 year Annualized return: 12.69% (Extra admin fees $36 per year)
Spaceship Origin: 6 year Annualized return: 9.68%
Raiz Aggressive 5 year annualized return: 6.93% (Extra admin fees $54 per year)
Raiz Emerald 5year Annualized Return: 8.41% (Extra admin fees $54 per year)
Note: these figures are all net figures after all the fees.
Simply generalising that management funds mean higher fees and then going for an ETF/fund with lower annualized return doesn't make sense to me.
What am I missing?
What am I missing?
You're comparing a single market index fund (Australia, vas) with diversified or more aggressive funds from spaceship and raiz , all of which likely held a very significant portion of the US and other markets
I'll pick your first example, spaceship origin.
Do the same comparison with say IOO, which is the top 100 companies in the world, compared to spaceship origin which is the top 200 (closest example off the top of my head)
IOO has a 5 year return of 15.9% from a quick google.
Essentially an index tracking fund of the same market segments would generally return the same or better, with lower fees. You also aren't tied to a single provider via chess sponsored exchanges, so reduce risk of single provider/fund manager (eg they decide to close or restructure, you're stuck with a cgt bill on liquidation)
Regardless, if you're actively investing, you're already ahead of the majority of the population, so whatever works for you and you're confident in actively maintaining and contributing to it, then keep at it.
I genuinely couldn't advise more against Spaceship. Worst platform I've ever had the displeasure of using.
If you want a set-and-forget type investment (which I wouldn't recommend in this form anyway) you should go with Raiz.
If you want a set-and-forget type that isn't bad you should setup automated purchases of index tracking ETFs
+1 on spaceship being horrible
definitely go with a CHESS sponsored platform, ie. you own the shares in the event they go bust
I have been with spaceship for more than 3 years now and never had any issues. Recently, when I was re-investing a large sum, I did a comparison with Raiz, Now both Raiz and spaceship have similar monthly fees (Spaceship is better if you invest in multiple funds as monthly fees is charged only once.)
https://raizinvest.com.au/blog/raiz-portfolio-performance-fo…
https://www.spaceship.com.au/voyager/universe/
https://www.spaceship.com.au/voyager/origin/
Also annualized returns:
Spaceship Universe: 6 year Annualized return: 12.69% (Extra admin fees $36 per year)
Spaceship Origin: 6 year Annualized return: 9.68%
Raiz Aggressive 5 year annualized return: 6.93% (Extra admin fees $54 per year)
Raiz Emerald 5year Annualized Return: 8.41% (Extra admin fees $54 per year)
You included the admin fees foe each platform but you coincidentally left out the fact that the actual fees for any "large sum" on their flagship portfolios are 0.275%/yr (Raiz) or 0.5%/yr (Spaceship)
That would mean an investment account of $20,000 balance would incur fees of:
$136 with Spaceship
$109 with Raiz
This discrepancy only grows larger as the account grows as it's percentage-based.
You also left out how horribly balanced the Universe (Spaceship's flagship portfolio) is with it virtually being a Nasdaq / S&P500 hybrid index, you might as well just buy an Index ETF for either and reap the same, if not better returns without the additional fees.
Raiz also has customisable portfolios allowing you to set up automated investments and dictate where your dollar actually gets invested whether it's shares, ETFs, property funds or even Bitcoin or a mix of them all.
Spaceship offers no unique portfolios, performance or features that couldn't easily be replicated without the additional fees.
@TheFreaK: Buddy, if you wanna be specific about their management fees:
Raiz: 0.275%/yr for all portfolios
Spaceship Origin: 0.15%/yr (cheaper than Raiz)
Spaceship Universe: 0.5%/yr
But again, I didn't ignore this fees in my initial comment. I am merely comparing annualized return of the funds which is NET return after any management fees. So, Raiz is unable to provide any better returns than spaceship despite charging so-called low fees.
I don't care if the fund even charges 10% management fees. As an investor, all I care about is the Annualized NET return after all fees.
So, as per your own example, for just 2% extra return that you get from spaceship's pre-defined portfolios (compairing to Raiz pre-defined portfolios) on $20,000 investment is extra $400 profit and as you said "it grows larger as the account grows as it's percentage-based"
Choosing where your money is invested is all together a different ball game, I am merely compairing the returns of predefined portfolio returns of Raiz and spaceship AFTER all fees
Pre-tax concessional super contributions every pay check. Doesn't have to be a lot but if you're young enough this will set up the second half of your life as you won't need to worry later about getting your super to a healthy place for when you're older.
Yeah i knew this late so now im putting more to use all my allowance from previous years…
+1 to this.
Why?
Written by an Aussie grassroots investor who's just a normal guy who wanted to share his info, has zero commissions or product pushing, written simply and in a meaningful way.
Just do NOT be tempted to jump in and invest BEFORE you understand the basics i.e your risk profile, end goal, strategy etc - changing course midstream can be rather expensive & a killer to your future investing, which can cost even more. Get a good plan and stick with it, anything in the short term can work but in the long term a good plan & understanding the WHY behind it is critical. Good luck.
Wasn't there a similar post to this about fortnight ago?
There's like a weekly "how do I get started with investing" post here.
OP, grab a copy of 'Rich Dad, Poor Dad' and go from there in terms of more detailed research.
You don't have to agree with everything Kiyosaki says… there's a lot of things mentions in his book that I a) wouldn't do, and b) realised is more complex to execute in real life. But it's a useful book for seeing the bigger picture first, understanding what you need to do (i.e. what you will be putting yourself through) and then narrowing down with what works for you (that's still legal).
Can't comment on barefoot investor as I've yet to read it properly but the gist I got from the summary is that it's as basic as it gets with HISAs… if you're having trouble with this, your head might be hurting after RDPD.
There are plenty of "gurus" out there who will provide you with information (for a fee). Most of this information is freely available. If you think that you have the discipline to manage your own money then you could have a look at smartmoney.gov.au for lots of information. The Centrelink -Financial Information Service - is also worth considering. A free service which will provide you with investment/ retirement options.
Good luck
Investing is for longterm. If you're going to need to withdraw, jut find a bank paying a good interest rate.
If you're investing for retirement: the vehicle should be super.
The safest and simplest investment are ETFs or managed funds that track an index.
not for everyone but one thing that has served me well….
Don't invest in something you don't fully (at least 75%) understand. If you have interest in a particular form of investment? Read up on it, learn it, critique it. Best way is to talk to someone who DOESN'T like that form of investment as they will give you every reason not to. Then you can weigh your own pro's and con's. Echo chambers are the quickest way to be screwed.
Get Rich Slow Club is a podcast I listen to recently that gives a good starter guide in terms of investing
As others mentioned if barefoot was too complex you need to avoid investing until it makes sense to you as you can't get much more straightforward and simple advice.
Shoot over to r/wallstreetbets they'll show you where to put your money so you can lose it as quick as possible - absolute regards there just waiting to help.
a lot of information from the web and book can be over whelming if you don't know where to start
sound like you need someone to guide you with the initial steps on getting started
do you have a friend or family member that already has investment, ask them for help
what about your parents? your parents probably have some form of investment now that you are in your 20s
Is a ncie reply - but as others have said if the stuff the OP has tried hasn't worked - perhaps it's just not for them i.e don't invest.
I feel this is far more of a case of FOMO and impatience and I'm sorry but some things take time - otherwise open a brokerage and buy some broad ETFs etc and hope for the best. Folks want all the results but want to put in none of the work, thats not how it works.
Set a weekend aside and grind away at a good site makeing notes in 45min intervals, 5min breaks in between - give yourself a reward for doing this. Everyone else had to do this, there's no exceptions & the info will last a lifetime.
chatgpt
https://www.google.com/search?client=firefox-b-d&q=top+stock…
I love this book (updated each year) - it outlines the metrics it uses to select stocks to be featured in the book and then provides a brief summary of stocks which meet the metric. If you find something that catches your eye (for example an industry you are interested in) you can then further research.
I find it helps narrow down the search and criteria when thinking about investing in the stock market.
I'm no financial expert, but I believe there are some - almost unbelievable - highly lucrative schemes available in Nigeria.
Edit: But seriously, at least put it in a high interest savings account (until you work out your next move.)
What was too complicated about the barefoot investor? Because it’s about as basic as investing gets, you’re going to struggle to find something that is simpler in terms of budgeting and earning from investments.