Starting My Investment Journey

pr0o on 26/10/2024 - 09:36

Hey guys,

Quick info about me. I am 29, male, make $120k in Sydney.

I got $50k to invest. I can put in $1k per month as well.

I did the maths and if i invest in something that gives me 8% per year, i will have $500k+ in 15 yrs and $1.2m+ in 25 yrs.

I did some research and i would say s&p500 is the safest option to give me at least 8% if not more. Now in Australia, best way is to buy s&p500 is ASX:IVV via commsec.

Or is there any other platform? Should i invest all my money in ASX:IVV? Whats your suggestion to someone like me?

PS: I have read passive investing site, but want to see what people are recommending nowadays.

Thanks 🙏

Financial

Comments

  • EightImmortals on 26/10/2024 - 10:03

    Stockspot is running about 9% p.a. IIRC and is managed and hedged a bit against the inevitable huge correction everyone is expecting.
    Or other managed investments might suit rather than picking things yourself. Wilson Assett management has a good rep as do some other others.
    If security is your main concern then term deposits at around 4.5 - 5% and hope the government deposit guarantee is worth anything if it's even needed.

    (Not investment advice. :) )

  • JIMB0 on 26/10/2024 - 10:03
    +6

    Owing a house to live in is a good place to start. Tax free gains to be had there.

    • pr0o on 26/10/2024 - 14:51
      +4

      I would love that too, but I live in Sydney and my borrowing is 450k. I don't want to buy dodgy apartment in Sydney whose strata skyrockets and I end up paying my savings to them. Tried moving with my work but work does not allow me.

        • pr0o on 26/10/2024 - 15:00
          +1

          I meant, my borrowing capacity is $450k. I currently rent, don't live in my owned place.

      • JIMB0 on 26/10/2024 - 18:29
        +3

        Get a bigger deposit. Should be able to easily save $50k a year on that salary. Look into ways of making extra money to speed up the process.

      • JakeyJooJoo on 28/10/2024 - 22:08
        +1

        I had a few mates in your shoes that ended up buying with a sibling. Worked out well for all of them. They've all sold them now, used them as a base to buy themselves decent homes with lower mortgages.

  • SBOB on 26/10/2024 - 10:06
    +3

    If you think all in one the us market is the best strategy for the next 20 years then yes, IVV is a great choice

    If you think hedging your bets that potentially other world markets might also produce favourable results then perhaps a more worldwide diverse option would be an option to choose.

    You also don't need to just pick one market/etf
    You could add some vas(or similar) for some local market exposure

    Personally,
    Dhhf is my regular sole account owner dca buy.
    Vgs/vas is my regular joint account dca buy.

    I'd assume you're also debt free, and have an emergency fund sorted? A few months ago you were borrowing for a car
    https://www.ozbargain.com.au/node/847572

  • Tee Rex Arms on 26/10/2024 - 10:10

    What amount do you put in your offset account each pay cycle?

    • pr0o on 26/10/2024 - 14:52

      Dont have mortgage so no offset. Why I don't purchase my first home? I listed the reason above.

  • theHMASfriendship on 26/10/2024 - 10:21
    +1

    Good news I just came into possession of some magic beans. I'm happy to offer a discount on them, I'll let them go for just 50k.

  • dtc on 26/10/2024 - 10:25
    +1

    Google ‘3 fund portfolio Australia’. Then do that.

  • foxmulder on 26/10/2024 - 10:34
    -2

    You make $10k per month and you can only save $1k? I personally will try to save $5k+ a month.

    • onetwothreefour on 26/10/2024 - 10:40
      +5

      His take home pay would be around $7500. Saving $5000 would leave him with $2500 per month for rent, food, bills etc. But yes, $1000 savings rate per month is low based on his salary.

    • Skramit on 26/10/2024 - 11:20
      +14

      Smashed Avo - $2500/month
      Eneloops - $2500/month

      Not much left over…..

    • pr0o on 26/10/2024 - 14:57
      +5

      Take-home: $7000 after tax
      Rent: $2000
      Food: $1000
      Electricity/nbn/insurance/phone (x2): $500
      Entertainment: $800
      Other investment: $300
      Rest: $2400

      I want to invest $1k out of that $2.4k, rest I want to keep it for emergency sir.

  • yellowfever on 26/10/2024 - 10:59
    -4

    Follow or reach out to Jack Henderson. Good tips and advice from him
    https://www.instagram.com/jackchenderson/profilecard/?igsh=M…

  • skid on 26/10/2024 - 11:27
    +2

    is there any other platform?

    CMC has free brokerage for the $1000/month into IVV

    Should i invest all my money in ASX:IVV? Whats your suggestion to someone like me?

    Diversify. PPOR, ASX (eg. VAS), Global/SP500 (eg. IVV), Super (concessional), Emergency fund, IP

  • pjetson on 26/10/2024 - 17:04

    I did the maths and if i invest in something that gives me 8% per year, i will have $500k+ in 15 yrs and $1.2m+ in 25 yrs.

    Is that after tax?

    • pr0o on 26/10/2024 - 22:50
      -1

      Nope. Did not consider tax.

      • BigBirdy on 27/10/2024 - 10:14
        +1

        Keeping it simple LOL

  • mrtin on 26/10/2024 - 18:52

    Also, 1.2mil in 25 yrs time is about 600k today. Thsts about 30k pa in income at 5%. Less tax

    • pr0o on 26/10/2024 - 22:50

      600k today is also good, no? Good extra money to have, good to retire in South East Asia.

  • try2bhelpful on 27/10/2024 - 03:38
    +1

    When I was young I found a good accountant who also gave us investment advice. Not everything was a winner but we did pretty well over the years. Whatever decisions you make I would run them past a professional who can give you advantages and pit falls. The problem is finding a good one.

    • dtc on 27/10/2024 - 09:53
      +5

      You have incorrectly interpreted that a condescending tone and wording is the best way to make your points.

    • Drj55 on 27/10/2024 - 09:55
      +3

      You've posted 7 times on here jumping down this guys throat. Yes he's naive and has done very little research. So why not say invest in DHHF through CMC for free brokerage and move on?

      • SBOB on 27/10/2024 - 17:17

        Seems just self-deleting all their posts is their chosen solution

        • Daniel Plainview on 27/10/2024 - 19:01

          @SBOB
          You seem a savvy investor, so would be familiar with the approach of selling down loss making positions prior to EOFY etc - at a certain point tossing further capital at things isn't a solution that benefits anyone, as was the case with me here. Lol continuing to argue wasn't going to work - deleting posts no good either? Then I dunno sorry.

          I'm very content to watch others interact with the OP and see what comes from it. :-)

          • SBOB on 27/10/2024 - 19:35
            +1

            @Daniel Plainview: You can sell down losses, but deleting trade history is a no no :)

    • onetwothreefour on 27/10/2024 - 14:53

      Agree with dtc above about the condescending tone of your replies.

      There's been a spike of investment related threads on here as of late and you reply in a similar way to most of them. Not sure if you think you are being helpful or just wanting to show people how much you know about investing and they couldn't possibly get it right until they know as much as you do?

  • BigBirdy on 27/10/2024 - 10:08
    +5

    Given you’re looking at where your investment will be in 25 years, your best strategy is putting it in superannuation. You’ll save upfront with a tax deduction on concessional contributions, save tax on it’s growth every year (15% tax on earnings), then have a tax-free income stream post age 60.

  • ColtNoir on 27/10/2024 - 10:10
    +1

    Maybe spend a couple of dollars and get some financial advice.

  • amorn on 27/10/2024 - 15:16
    -2

    I would think thrice before investing in stocks for long-term, esp. the US. The US is too risky and probably incompetent as well. Trading ASX maybe better. Consider gold, silver, and real estate, but maybe not a strata title.

  • bluyu2 on 27/10/2024 - 16:49

    I wouldn't put all my eggs in one basket. IVV is ok, but I would diversify, say ETFs IVV, GOLD, and IOO. Risk versus return can be assessed and managed. Efficient Frontier calculations can made and chatted for possible portfolios. There's a few online places you use, or Excel etc.

    • SBOB on 27/10/2024 - 17:13

      but I would diversify, say ETFs IVV, GOLD, and IOO

      There's something like 70+% overlap of IOO and IVV.
      Eg compare top 10 holdings table and the country/market weighting charts via the following
      https://www.etf.com/tools/etf-comparison/IOO-vs-IVV#block-et…

      Why would you recommend those two for diversity with such overlap?

  • bluyu2 on 27/10/2024 - 18:18

    Personally I prefer IOO to IVV, if you look at risk and return, plus it seems to be more diversified by country. I only included IVV as many want an S&P500 index. If it you Efficient Frontier calculations, you should find IOO and GOLD are a good combination.

  • SlickMick on 27/10/2024 - 19:28

    As other have said, good priorities would be:
    1) PPOR
    2) Super, and in super I'd go for ETFs that track an index and have ultra-low fees. Yeah, tracking several markets is ideal, but they all average out in the long run… unless you feel that the US might collapse and we survive. I personally have VAS & VGS, and moving to A200 & BGBL.

    I wouldn't invest outside of super personally. I can only see 2 reasons to:
    a) negative gearing to reduce income tax - which is pretty shortsighted compared to avoiding CGT
    b) needing access to funds before retirement - ideally having a PPOR with an offset account covers that

  • bluyu2 on 27/10/2024 - 19:43

    Super investment is ok if you want to lock it away.

  • CantonasKungFuKick on 28/10/2024 - 10:53

    You could jump into eToro and start off with the virtual investing to get a feel for it?
    There's also all the ETF's on there which people have mentioned. I am also new, and have been using eToro copy trader functionality along with dabbling in investing in stocks I have researched.

    If you use it, use the referral as you get sign up bonus from memory.

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