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I plan to automate my savings into investing... How?

Discussion in 'Money Management' started by ClintBX, 6th Apr, 2015.

  1. ClintBX

    ClintBX New Member

    6th Apr, 2015
    Perth, WA
    Hi all,

    I'm planning to put my regular savings into dollar cost averaging type of investing.

    My plan is to save 20% of my income (fortnightly), have it automatically debited into an investment account of some sort and then invest what I save into indices or something and have that automated so I don't have to think about it and get on with my other plans in life.

    I've been having difficulty finding somewhere I can set that up.

    I set up a westpac investment fund only to find out that they don't have the facility for what I'm trying to do and I was in the process of filling out a vanguard application form until I got to the page about selecting one of their investment selections that stated I needed a $5,000 minimum.

    Who has the facility to allow me to do what I'm trying to do?
    Is what I'm trying to do even possible?
    And I have a low income, therefore I can't save very large chunks of money. Is this something that's even viable for me or is this out of my league?:confused:

    Please help me get the right information. The reason I like the idea of investing my savings as soon as possible is because it takes away the possibility of me drawing back from my savings which is a recurring issue for me. Once its tied up in an investment, then I can't touch or access it so easily.

    Help me guys. Who has the facility that will allow me to automate my savings into a dollar cost averaging investment strategy?

  2. TomatSaveInvestRepeat

    TomatSaveInvestRepeat Member

    20th Apr, 2015
    Hey Clinton,

    I use CBA for my share trading account - a CDIA (Commonwealth Direct Investment Account). This links up to my normal savings account really well and I usually buy new parcels of shares monthly.

    However, automation is not really an option for buying shares (it shouldn't be a process that can be automated either, there needs to be more control than that!). If you were looking to get into a managed fund though, you can automate a direct debit into the fund - maybe something like this. . I'm not sure if these guys need a minimum amount as it's not mentioned on this page, but like you mentioned - many funds do.

    If you are finding it hard to get an amount saved that meets the funds minimum requirements - maybe set up a direct debit yourself into someone else's account that you trust (partner, mum, dad etc). I always find that I am more reluctant to go into my savings if I have to go through the gatekeeper first!

    Or ask your employer to split your wage into a different account that you can't readily access.

    Anyway, hope that's some kind of help for you mate. Let me know if you find any alternatives.

    Last edited by a moderator: 27th Sep, 2016