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Discussion in 'General Investing Discussion' started by Heyman_526, 23rd Jan, 2020.

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  1. Heyman_526

    Heyman_526 Member

    Joined:
    23rd Jan, 2020
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    SA
    Good afternoon ladies and gentlemen I was wondering if I can get some help please? I am new to investing and I don't really know what I am doing I was wondering what the process is? I am looking for something I can invest in and have someone manage it so that it becomes passive income that comes to me directly. What would be good to invest in? I have limited funds but I'm open to suggestions I don't know if this is the right place I'm just looking for some regular passive income any help is greatly appreciated thank you.
     
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  2. Hodor

    Hodor Well-Known Member

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    hodor
    If you want completely passive I'd have a look at Vanguard index funds. Something like the Vanguard diversified growth
    Investment Products

    Truly passive, low cost, diversified across assets and countries.

    There are other similar options depending on your risk profile/tolerance.
    You can buy it cheap using an online broker, CommSec is the best known in Australia.

    Two more things.

    Have realistic expectations.

    Don't get attracted by a recent history of stunning performance, especially if it comes with high fees.
     
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  3. twisted strategies

    twisted strategies Well-Known Member

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    3rd Nov, 2013
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    QLD
    Heyman_526 ,

    welcome to InvestChat ,

    *** I don't really know what I am doing I was wondering what the process is? ***

    what better excuse to learn , you still need to boost that knowledge so you can decide what is best for YOU ( and when you are getting good advice )


    Investopedia has a strong US flavour but a lot of that translates to Austalia

    Financial Terms Dictionary

    https://www.firstlinks.com.au is an Australian website which touches on subjects that may be important to you .

    the most important concept is ALL INVESTING INVOLVES RISK ( some more than others )

    since you are chasing income over portfolio growth apart Hodor's suggestions ( which are fine by the way ) and you are not pumping in millions ...

    look at PL8 ( i hold these ) CVF and EIGA ( i don't hold the last two ) these currently pay ( small ) divs monthly the current unit/share prices are a little high for my tastes , but if you take so time to learn and just WATCH the market maybe those prices will lower if the market has a downturn ( which is probably overdue )

    my old standby suggestion was a REIT listed as CMW , it pays 3 monthly dividends and was great value when under $1 a share ( currently trading @ $1.22 , but might come down again in the future )

    i prefer using an online broker so i can add more cash when i choose to ( some managed funds would like regular cash injections ) and chop and change direction when i see fit

    your online broker will charge you a transaction fee ( called brokerage ) each time you buy or sell ( but check the fine print just to be sure , if you dabble in foreign listed shares many details change )

    a VERY important concept is to DO YOUR OWN RESEARCH ( DYOR ) ( before you part with your money ,... all investing has risk , remember )

    don't be afraid to develop a strategy that suits you ( and everyone else can do their own thing )

    cheers and good luck

    if it doesn't look easy it is because there are a lot of traps ( for beginners and the very experienced )
     
  4. Heyman_526

    Heyman_526 Member

    Joined:
    23rd Jan, 2020
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    Location:
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    Thank you very much for your advice I was just wondering what would be better for money back? Portfolio or divideds also can I get a broker face to face that can manage my investment? Online seems okay but I just want to have someone face to face that I can contact directly thank you
     
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  5. twisted strategies

    twisted strategies Well-Known Member

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    QLD
    selling your shares ( after you make some profit ) leaves you liable to Capital Gains tax , dividendends are 'income ' and become part of your tax statement

    franking credits are prepaid tax SOME companies pay on dividends ( so you MIGHT get a little tax relief and some dividends )

    now i have had a 'fullsevice ' broker ( a while back ) but most communications were via email and phone calls ( BlueScope Steel arranged it after i missed a SPP offer and the cash put in qualified in as 'an institutional account ' )

    even when i had that account i ALWAYS did my own research before saying yes or no , to the broker recommendations ( but then that broker was interstate and i live in QLD )

    you will probably have to check the ASX website and find registered brokers and find one that suits you

    Find Information About Stock Brokers and Brokerage With ASX, the Australian Securities Exchange. You Can Also Find a Broker Based on Your Investment.

    you might also be wise to ask a few questions (about tax implications ) with your tax accountant

    cash dividends versus DRP is aa very individual choice
    in 2011 i selected DRP whereever possible ( not every company has a plan )

    but several things have changed since then and i am currently veering towards cash income with NEW purchases ( while still participating in DRPs of existing holdings , i may reduce DRP participation later this year )
     
  6. Hodor

    Hodor Well-Known Member

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    hodor
    You will be paying a hefty premium for face to face for likely no value add. What are you thinking you will get out of contacting someone directly? Is it an emotional I want someone to hold my hand? Do you feel so inexperienced you want them there?

    Both dividends or portfolio growth are your profits, you get a CGT discount in Australia if you have held for longer than a year and you can control when you create a tax event. Dividend income is preferred for many for psychological reasons even though strictly the math/tax etc doesn't necessarily stack up.
     
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