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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

    Joined:
    6th Apr, 2015
    Posts:
    2
    Location:
    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?

    Clinton
     
  2. TomatSaveInvestRepeat

    TomatSaveInvestRepeat Member

    Joined:
    20th Apr, 2015
    Posts:
    6
    Location:
    Adelaide
    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.

    Tom
     
    Last edited by a moderator: 27th Sep, 2016