Time for action!

I think you have chosen a sensible fund.. good geared blue chip fund..

Any spare cash each month, just dump it in, that way you doller cost average your entry through peaks and bottoms.

How does it feel to be a fellow investor now?

 

Hi all. I started another thread recently 'My investment plan, incl MF and IPs. Comments pls'. This thread is great reading about managaed funds, I'm getting a lot of ideas and information that I wanted when I started the other thread (mainly managed funds).

Do you get a choice of whether to pay monthly or leave it to build up with all margin loan providers? If margin loan interest is tax deductible, what is the reason behind not paying it regularly (is this what ppl mean by capitalising the interest from a margin loan?)? Why not pay the interest close to end of financial year then claim it soon after?

I can't remember who posted it now but earlier there was a poster who said to not withdraw your money out of a fund unless for investment reasons. Would this include for helping to service an investment property? eg. if my out of pocket was 145.00/wk for an IP. I could withdraw from a fund to finance that out of pocket expense and claim it as a tax deduction?

 

haha, it feels good.

So what happens next? I applied for the fund using my bank details. Do they have the authority now to simply withdraw the amount I specified? Or do I have to make a deposit when they get back to me?

How does the gearing work with this fund. Does my $5000 instantly become 10,000, or does that only apply for the additional contributions? When I exit the fund, how do they determine what percentage of the cash is mine? Or does the leveraged part of the fund not even show up in my account?

I did the read the PDS, but I don’t think it really answered any of this. Or maybe I just overlooked it (quite likely).

Ta.

 

usually those funds are geared at 50%, so your $5000 is essentially $10k in the market.

 

getting smart then rich

hello there,

have you ever thought about doing it your self?

the best why to learn about investing is to start investing right ?

what i have done is to get a commsec account (can be any share manager) jump onto the asx and start studying the market, use the educational courses to get useful hinds and tips, talk to people who have shares and how they look at trading, find out the different types and the one your most comfortable with.

get a small amount of money that your are comfortable with maybe lossing (i started with $2000) and start buying.
i bought the minimum of $500 lots, which gave me 4 investments
out of my 4, 2 went down slightly but i learnt what i did wrong (and the losses were well worth the lessons i learnt) 1 goes up and down but basiclly stays the same and one that i got wind of from talking to others people which has grown by 150% (from 10cents a share to 25 cents)

but at the end of the day it is the lessons i have learnt that give me the greatest reward.

why pay someone else to do some thing you can learn how to do?

your young, you sound intelligent and determined and you said that you have no social life so you must have some spare time to grow as a person by learning something new?

food for thought

good luck

 

I've deleted the unnecessary parts. Congratulations on making the hardest move. Everything's easier from this point on.

 

Thanks Glebe, and jbking.

 

Because its better he gets started TODAY, put his toe into the water.. In time he will learn new things and no doubt will re-adjust his direction.

Me personally I started with T1 float and the Commonwealth bank blue-chip happy pack 8-9 years ago.. I have been through almost everything! From direct shares, to managed funds, to floats, to direct property (renovating) and now I'm back to managed funds.

Wealth Creation should be automated, not needing you to devote lots of time into it.. Sure there is nothing wrong with buying directly shares, but the wise thing would be is to also have a quality managed fund.. like 452.

He is paying for 20-30 years plus experience within 452, so why argue with that!

why would you argue with these results? Colonial First State: Historical performance chart

$100,000 ten years ago, today worth over 1 million! you wouldn't pay for such a result?

 

That is basically my thoughts aswell. At the moment, a manged fund will do alot better than I could investing directly in shares.

I would still like to learn ofcourse, but atleast now I have my toe in the water, as crc put it. So atleast I have something happening while I am learning more.

It's definitely something I will consider. But I don't think I'm at that level yet.

 

Well, the money disappeared from my bank account this morning. So I guess I am officially invested (or maybe I was robbed ).

Now I just have to finish up at the gym and check my mail when I get home. I assume CFS will send me details of my account where I can check up on, and 'manage' my fund.

Quite excited.

 

Should I be expecting a letter from Colonial?
I assumed they would send out details on my investment, and account details so that I can log onto their site.

Does anyone know how it usually works from here? Do I need to contact them, or just give it a bit more time?

 

Just had 1k taken from my account as well for the CFS geared fund (going to have 160 a fortnight moved as well).

 

Cheers, that's good to know.