Nervous Start

1. 1%
2. 15%
3. 71%
4. 13% (cash)

I've only just branched out into direct shares a few weeks ago. Bought a few small parcels of some of the big boys.

I started with $2000 in a managed fund when I was 16 and I think this has helped me greatly, as I've had many years now to build up my confidence, to learn about the market and work out what I want. I now have a margin loan as well and I think it is excellent as I don't have to worry about finding the capital when I want to purchase any new shares. As long as my LVR is kept low all is good.

BR

 

1. Shares - 0%
2. Managed Funds - 0%
3. Property - 0%
4. Other? - 0%

Paying off debt this year. That said, I'm living in ppor which was bought for 180K and has 170k owing, and is possibly worth 190k.

 

Andrew, phew! Glad to hear you're not on the bleeding edge!

My asset allocation at present:

1. Shares: Listed 4% (I was actually surprised at how low this is), Unlisted 9%
2. Managed funds 35% (of that about 80% local shares, 20% international)
3. Direct residential property 44%
4. cash 8%

I'm surprised people have so little cash on hand. How do you cope with both emergencies and opportunities? No doubt my cash level will fall with new purchases...but I think it's a good plan to keep some powder dry for unexpected events. Of course it's all relative too. The bigger the pie, the smaller the slice you need to keep liquid.

Cheers
N.

ps. We'll do part 5 of LOE when we get time...

 

Hi Nigel.

When you refer to 'Cash', do you mean the old 'hard earned', put in the back pocket stuff, or do you include LOC access as well?

 

I'm glad this thread has developed into a good discussion. After I joined the forum I realised there really wasn't much interaction at all unfortunately.

Anyway, after asking everyone else I thought I better at least put my own details in:

Shares - 0%
Managed Funds - 0%
Real Estate - 92%
Cash (High Interest Savings) - 8%

The idea is, of course, to build the Managed Funds up to around 20%, which is still several hundred thousand, so I'll do that gradually I think.

Andrew.

 

Yep. Cold hard cash...Filthy lucre

 

Any opportunity in my current playground can be covered by loans, talking shares atm as my niche of the property market is too hot to touch.

Property LVR is around 30% so thats a big cash store if needed and I have enough options on credit cards untouched for around 2 years income, joys of investing directly into banks that hand out credit cards to shareholders like candy bars and not having resi loans to worry about card limits

 

Currently living paycheck to paycheck, we do try to keep an extra 1k in the account that our mortgage is payed out of for emergencies, or if the budget gets blown by a small amount. Once my debts are cleared, I'll have about $600 a month more cash flow. Whilst saving in managed funds I might keep a few more $k set aside for emergency money.

 

I've recently made some (possibly) temporary changes, so I'll go with the longer term average......

Direct Property: 57.3%
Managed Funds: 42.3% (4/5 Oz, 1/5 International)
Direct Shares: 0.2%
Cash, Filthy Lucre, Folding Green, Dough....: What's that? (I try and keep this to an absolute minimum. LOC's are available if needed, everything is paid for on a 55-day interest free Credit Card that allows some cash to sit in an offset account against another loan account.) Maybe 0.2-0.4% generally. Also, if it's there, it only encourages my wife to think we have it to spend Ooh......I can feel a clip around the ear coming.....