Tell us some more then. Not sure i'm game enough to take on the equity loan for investment but thanks for the suggestion. Otherwise if I buy at 5k lots once per year I miss out on dollar cost averaging? I'm looking to invest long term, 10-15 years. It is also possible that when funds have very high levels of cash inflows there is rarely a need to sell to rebalance just buy less. What is wrong with fellow whirlpoolers, I've had nothing but negativity regarding this vvlu. I found the vanguard website quite confusing to buy.
Cool — how do you prognosticate yourself accurately? Yes, but to summarise, there are two options for investing. There may be currency conversion or holding costs deducted though. In 30 years you will double your holdings 3 times roughly. Also is this a good fund to invest in terms of fees or do Vanguard have other better products. My method is mathematically sound. The time to sell is when the party is going full swing. What about ongoing investment of smaller amounts? You could pay off the mortgage, and save paying all that interest.
Ok , I've signed up to Commsec initially. You could literally just buy any of those. Is there some non-obvious extra step I might have missed? Wait for the market to open and then buy on-market at a price others are buying in decent quantities? I understand dividends are taxed even if they are reinvested. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance. But the Aussie dollar is not going to go back to its highs anytime soon right? If you can budget for all those things and still have money left over to invest, then go for it. You invest 20k in 5 companies. Codebeard who is your stockbroker? I've been doing a lot of research as I'm new to investing and obviously apprehensive over take the plunge, folks never invested and have been very risk-adverse their entire lives which has rubbed off on me.
Wanted to avoid creating a new thread. Estimating a year's worth of distributions based on the first quarterly distribution is extremely error-prone. Does it account for the fact that your grandchildren will be buying their first house and you want to do something nice for them and help with a deposit because you basically live in hospital anyway? And to get the same diversity as the index you only need 5 or 10 shares tops. From what I can see, the 'Vanguard® LifeStrategy® High Growth Fund' could be something I could utilise? My timeframe is indefinite, at least 10 years though. Diversification benefits are limited beyond roughly 20 or 30 stocks.
It's not a matter of whether yours are right or wrong, but determining where they lie relative to everyone else. Just to confirm, are you talking about selling 4% of the shares each year? There is an argument that if the asset recently dropped it might be a good time to buy more. If there are any members that use the single etf trading strategy, feel welcome to comment on their experience of it. And do dividends get reinvested? This is the recommended way to invest with these funds, amounts at regular intervals for long periods of time. This seems to match what I've observed. You pay brokerage and your own time.
Really interesting point — never thought of it that way. Market timing is a mug's game as nobody can reliably predict when things will happen. I'm going to stick to that, that's my plan, you are free to make your own choices and change your mind whenever you like! Past performance is not an indicator of future performance etc etc. That's true but he is getting 6 different stocks for the money. That's all nice and great, but doesn't diminish the fact that the first quarter disti matches what many savings account produce the entire year. What is the recommended approach if you want to make regular monthly savings into a Vanguard Index Fund? Unless something changes in your circumstances or your strategy changes significantly, this target portfolio is still going to be the reasonably best way to distribute your investments, regardless of what happens to prices. Wouldn't I be better off just putting extra money into my super? My method is mathematically sound.
Whereas you only really feel the pain of brokerage briefly twice: when buy and when you sell. Everyone kept telling him it smelt of a scam, and he wouldn't take any notice. As you saw in a graph posted earlier, value has not outperformed for at least since very early 2000's at least. Secondly what is the reasoning behind rebalancing the portfolio and how often should this be done? That being said my main suggestion is simply: Don't Do It. My preference is to buy property and have been doing so for quite a number of years. You can only input a fixed spending amount or fixed percentage amount.
If I were to invest in shares, what will I have to do in regard to tax? Don't worry about rebalancing items with deviations less than this Why do you recommend this method? I figure my forced savings day after payday keeps the momentum rolling. Also a pretty big bet putting half in small caps. When you have 4 years to live you liquidate 25% of your assets. A good index fund should match the benchmark. Market timing is a mug's game as nobody can reliably predict when things will happen. Otherwise it's just bad luck. I'm 28 and want these to be for the long term.