Asset Classes - preferred mix

Discussion in 'Share Investing Strategies, Theories & Education' started by islandgirl__, 19th Mar, 2007.

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  1. bundy1964

    bundy1964 Well-Known Member

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    If your buying as an investor compared to the general population then yes your an agressive investor.

    Still puts you in the rather rare ground of being one out of the quarter of a million people that also do margin loans. Looking at apples with apples 20% is fairly tame. 20% to the people who do nothing is aggressive.

    My 74.52% margin loan for Blue Chip stocks and managed funds may be aggressive too considering I also have property loans.
     
    bundy1964, 6th Apr, 2007
    #21
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    I think the point is that there is an assumption with these calculators that you ARE an investor - and so we aren't comparing to people who don't invest.

    I also find it interesting that some people (in general) equate a 50%+ LVR with shares as far riskier than a 90% LVR with property.

    Once again, it comes down to an understanding of what risk actually is ... something which I think many people don't really get. It is also very personal - each person views risk differently ... which is why we add disclaimers such as "this does not take into account your personal goals and circumstances" ... because the answer to the "risk" question is very different for everyone.
     
    Simon Hampel, 6th Apr, 2007
    #22
  3. bundy1964

    bundy1964 Well-Known Member

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    Location:
    Adelaide, SA
    I think in general that people see a need for housing loans. Shares are more likely to be bought with spare cash laying around with no thought of gearing.

    My mother with a few TLS shares, ADB shares held jointly with me, a managed fund and some term deposits that are labeled as investment accounts would be classed as an investor. She would admit to not having a clue on how to get them up and running properly let alone borrowing to increase them.

    Then again last year I was going out with someone who was studying economics and accounting, shared an inherited IP with her brother and worked part time in a realestate agents on rent rolls and she didn't have a great grasp of the concepts either.
     
    bundy1964, 6th Apr, 2007
    #23
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