Mortgage reduction

Discussion in 'Investment Strategy' started by Betheball, 25th Nov, 2010.

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  1. Johny_come_lately

    Johny_come_lately Well-Known Member

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    1. Wilson Priority growth: 30%
    2. Wilson Priority Core: 31%
    3. Platinum Asia fund: 18%
    4. EQT PIMCO Global Bonds Fund: 6 %
    5. Municipals: 5%
    Cash: 10%

    Asset Allocation is as individual as the car you drive and the shoes you wear. University studies show that allocation affects 90% of your potential return. As you are borrowing money, you have to get it right. In another downturn you need to know when to pull the plug and when to hold.




    Johny.
     
  2. Johny_come_lately

    Johny_come_lately Well-Known Member

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    You obviously like Wilson a lot. What are your reasons for choosing them?






    Johny.
     
  3. Betheball

    Betheball Member

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    I like the sound of them and they have been doing pretty well over the last 5 years even in the down turn. Perhaps I better put some more bonds into the equation... perhaps 15ish%.

    1. Wilson Priority growth: 29%
    2. Wilson Priority Core: 29%
    3. Platinum Asia fund: 18%
    4. EQT PIMCO Global Bonds Fund: 15%
    Cash: 9%

    I can't work out that EFT list you have in the other area. Most I tried looking up seem to only have an average of about 3-4%, which I don't think would work since I'm paying 7.22% interest.
     
  4. Johny_come_lately

    Johny_come_lately Well-Known Member

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    I can not say this with more emphasis. Past Performance Does Not Reflect Future Returns!
    :p





    Johny.
     
  5. Betheball

    Betheball Member

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    Then how do you measure performance? Is it just a lucky dip or...?
     
  6. Johny_come_lately

    Johny_come_lately Well-Known Member

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    Fundamentaly you could get a business's books or technically follow investors phsycological trends. Or....

    Invest in a market. With index fund. If the market wins, you win. If the market loses, you lose. Don't believe in the market, Don't invest!




    Johny.
     
  7. Johny_come_lately

    Johny_come_lately Well-Known Member

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  8. Rod_WA

    Rod_WA Well-Known Member

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    Be careful with what you are planning to do here. You can't sell some units in the funds that you bought with borrowed money (eg margin loan or line of credit) and put the proceeds into your mortgage... if you could do that, then why not buy $270k of shares with a line of credit, then sell them and pay off your mortgage, all the LOC will be deductible, yes??)

    You can put the income from the MFs into your mortgage (the income may incude a capital gains distribution) - this is the essence of debt recycling - but not the sale proceeds.
     
  9. Betheball

    Betheball Member

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    I see, so I'm better off telling the fund not to reinvest the gain, which is an option.
     
  10. Betheball

    Betheball Member

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    Yeh, I've been looking at that. This is the list of index funds I could see on there that have performed well over the last 12 months:
    Asx200 Materials
    Asx300 Metals/minning
    Asx50
    Asx All ord Gold
    Asx Small ord
    Vanguard Int Share
    CFS Int Global Share Hedged.

    But there is a lot of up and down which I suppose is expected.
     
  11. Johny_come_lately

    Johny_come_lately Well-Known Member

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    Asx200 Materials.........Aii S&P/ASX 200 Resources - RSR ?
    Asx300 Metals/minning.Aii S&P/ASX 300 Metals & Mining - MAM
    Asx50.......................SPDR S&P/ASX 50 - SFY
    Asx All ord.................Vanguard S&P/ASX 300 - VAS
    Gold.........................ETF Securities _ GOLD
    Asx Small ord.............N/A
    Vanguard Int Share
    CFS Int Global Share Hedged.





    Johny.
     
  12. Johny_come_lately

    Johny_come_lately Well-Known Member

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    As you are probably aware, I am an index nut. I believe that stock prices are random and nobody can predict the future. The market has to fail (1987,2007) for you to lose (and I did, bigtime).

    There is the core/satellite strategy.

    Have a (larger) core of index funds/ETFs and a (smaller) satellite group of actively managed funds. Use an ASX/300 index as a core and Wilson type funds as a satellites.

    And perhaps a casino fund for playing around. :p



    Here's something to read:

    https://www.colonialfirststate.com.au/prospects/Market_watch_1010.pdf







    Johny.
     
    Last edited by a moderator: 1st Dec, 2010