What would you start with investing in?

Hi,

If you were new to investing, had no debt, only had $10,000 to start with.

How or where would you start? What investments would you consider and why?


Thank you, for any replies.

 

Hi Jay

I would use the $10,000 to pay down the supplimentry loan of $16,000. I would use managed funds as the vehicle to create wealth. And I would read lots of books and attend courses at Tafe or from the ASX. I would join an investment club.




Hope that helps,
Johny.

 

Agreed. At the beginning the best thing you can invest in is yourself!

I'd also add index funds to that list of investment options.

I also think it's wise to keep a healthy cash buffer at all times. Keeping a small portion of your money highly liquid gives you the opportunity to take advantage of opportunities as they arise.

 

Thank you Johnny-come-lately and Chris, I have so many various investment books I'm going through.

I'm currently halfway through 'Investing for Dummies' I have 'Sharetrading for Dummies' and the list goes on, I agree with investing in yourself.

I've read a little about 'Geared managed funds', would that be something I'd need to consult a financial adviser about before trying to you think?

Thanks again.

 

No, but you might like to read...

http://www.invested.com.au/85/leverage-strategy-37587/

 

Wow, a lot of reading material, thanks for the thread I learnt quite a bit from that. I felt like I have a little of that 'poor guy' syndrome..LOL.
That was interesting to read and understand valid points from either side regarding leveraged investments.

I read somewhere you can't be financially free without an investment loan of some kind to assist, I guess it depends on what investment for how long and how much etc. I feel there's so much to learn, so little time.

Thanks for your time in sending me this thread

 

"I read somewhere you can't be financially free without an investment loan of some kind to assist,"

It is true that a lot of people have made a lot of money through debt. The smart ones cashed out before the crash. The investors that didn't sell, lost a lot of money.

While prices rise, a leverage portfolio makes more money and when prices fall you lose more money. During this time, you still have to pay the interest on the loan. Also, you have to borrow a significant stake to make it worthwhile.

I would not recommend a margin loan for a begginer.

It is very possible to reach financial freedom without a loan.





Johny.

 

Thank you Johny, it's a pity I didn't learn about investing many years earlier.. at age 47, I'll have to learn to speed read to get through my library of books.

I agree it probably could be possible, I've finished reading 'Morris Kaplin's 'Financially free in 5 yrs', I'll do my best at following one of his investment strategies.

Thanks again, have a great day

 

Sounds like his strategies require leverage... remember leverage equals increased risk.

 

Yeah, do a lot of reading on investment and try and learn a lot before you invest.

 

Hi Chris yes, there is leveraging in his strategies and there must be a small percent of leverage that can be used cautiously.

Thanks James 200, I agree, I'm on that mission to read as much as I can, I'm just so keen to get started.

Cheers