Young Investors (<30) Thread

A friend of mine read this and commented
this is a
"how big is your penis? thread"

Hmmmmm

After reflecting a bit - it probably is
Can look really silly

Though peoples intentions are good
Its can appear a bit silly - comparing I have this or that

I dont mind it and never thought of it this way though I do see my friends point

 

Yeah I'd understand that.. however is your friend an investing-orientated person? People who aren't really interested in investing are usually the people who think it's wrong to talk about financial stuff.

If this were a car forum and everyone was talking about the size of the engine in their car - you'd get the same comment.

I don't see anyone here bragging so much about what they have - generally the people who actually post details are usually those at the lower end of the wealth scale.

 

I don't think that's anyones intention.. people are just sharing their experiences and what they have achieved thus far!

 

I'll throw my hat in.

Age = 28
Job = Financial Planner
Inv = PPOR ~$600K (Debt = ~$420K) Purchased June 2006.

We have spent the last 18 months getting comfortable with the loan repayments. I have just started a savings plan (on top of what is building up in the offset account), though due to a recent promotion this will start to increase more rapidly. I will probably start making some share investments as my bonuses come through later this year. I'm hoping the market drops a bit more (personally, though not for my job sanity because my clients get a bit needy around bear markets ).

My plan is either to to just build up a share/managed fund portfolio over the next few years while we have kids, as well as paying off the home loan, and then kicking up the investments when my wife goes back to work so we can retire very comfortably. I will also set up some investments for the kids as they come along!

I'm still weighing up a gearing strategy for negative gearing purposes to keep my tax in control over the next few years, but will have to sit down and do the sums prior to the end of the financial year.

Anyway, this is an interesting thread which i'll keep an eye on.

I'm surprised though about the way people our age are getting into investment properties considering the prices and potential for yield and capital growth going forward in property (especially residential) compared to share investments.

 

When they come up with a share market investment that allows 100% gearing, with the loan secured only against the shares, with no margin calls ever, at less than 8% interest rate, I think you would find property investment starts dropping off a little!

By the way, I certainly dont have the biggest penis around, but compared to where it was a few years ago, I am really happy with it. I never even wanted to have the biggest penis, I just want to have one big enough so that I can really get the most out of life in a comfortable fashion. Thats not too much to ask is it?

 

I'm not sure when all is said and done with this "credit" crunch we are having at the moment if property will become much different to the shares scenario you outlines in the future, especially investment properties. Not to mention that the above gearing/margin call/interest rates is simply due to the volatility of the underlying investments. I don't think residential property is any less volatile than shares and managed funds, it is just much harder to measure, which is why loans are over much longer periods of time than similar share/MF loan periods.

 

Maybe, it certainly is possible, but I honestly doubt we will see a situation where banks are recalling loans on investment properties when the interest payments are being regularly met.

Not sure I understand what you are saying - shares have margin calls, lower gearing and higher interest rates because of their volatility, yet they are no more volatile than property??

Also, looking at the near future in the share market do you honestly think it makes that much better an investment that property?

 

Excellent thread! Some of the things the people here have achieved by the age of 21-23 absolutely put me to shame! Still, here's my position:

Age: 26
Single
Working full time

PPOR: ~$500K, loan $295K

100% geared, capital-protected, managed funds: $212K, loans $200K
"Standard" managed funds: $156K, loans $112K (some secured by PPOR)
Direct shares: $26K
Cash: $8K

Immediate goal: start trading successfully to generate active income.

Medium-term goal: to generate enough investment income (either active or passive) to be able to make do without a job, if need be.

Long-term goal: to have enough passive income to permanently replace my wages.

 

Interesting discussion on the question of buying a car, too. I went through this decision myself about 18 months ago.

I think some people were a bit quick to say "you're making a big mistake". It is possible to delay gratification too long and if you wait to be able to buy a car from passive income, chances are you'll be OLD by then (at least by this thread's definition ). Most people have trouble motivating themselves by a bank balance in itself - it's what the money can buy that keeps the motivated. If you deny yourself everything all your life then you'll stop believing your own promises of delayed gratification. Of course, that's no excuse to go and spend, spend, spend, but you have to weight it up on a case-by-case basis.

Personally, I've chosen to take the middle ground and buy a decent car that I like and enjoy driving, but hold off on the more expensive one I would have really liked and could have stretched my budget to if I so decided. I've had the car for a year now and still love driving it. No regrets there! If it means I'll take a year longer to become a millionaire - so be it.

 

That was hilarious, especially read by itself and not in the context of this thread! I can imagine that some of the female forumites are now feeling a little uncomfortable with all this talk about male bodyparts!

I agree with EMP about taking a sensible apporach to purchasing items of desire. I work hard, play hard and give 110% at everything i do, so that i can enjoy the icing continually. It keeps me motivated, and i enjoy the ride.

 

Hello all, new here...

Current situation:

Age: 28
Income: Combined with my wife, 104K p.a.

Current financial: About $260K equity spread across 5 IPs...some minimal cash reserves in savings account at 6%.

Positives: Good growth over the three years since we started investing.
Negative: This is a very -ve cf portfolio and its something that we have had to rectify just recently.

Future: We are in the process of downgrading by selling two IPs, which will open up cf. Later this year we will buy direct shares or perhaps an ETF or LIC. Also I will look into using a LOC to fund the -ve gear for purchasing a block of units this year.

I've recently been reading about delayed gratification and all I can say is that it feels great to finally see the hard work STARTING to pay off.

On another note, great to see "younger" people here with such huge savings already...great stuff!!! Oh, and I'm quite comfortable with the size of my penis.

 

I already posted a little bit of this in the Introductions but for the sake of completness:

Age 25
I earn 85k (with hopefully large bonuses)
My partner has a scholarship for 18k tax free

We rent in Sydney and only spend about 20k together. Don't own a car (I try and stay away from owning anything that requires any sort of maintenance).

Investment details.
I have around 130k in various places:
35k in STW (S&P200 ETF)
15k in property managed funds
30k in bankwest high interest (waiting to be invested)
The other 50k is spread amongst 10 or so different managed funds including international shares, asian shares, small caps, and geared Australian.

My partner has about 10k sitting in a high interest bank account.

I save 35-60k a year (I know that's a wide range. Will probably explain later).

----------------------------

Goals
I plan to set up a trust very soon - actually I've planned to for a while which is why I haven't had any recent investments and I've now got too much cash.

Once I have a trust I will sell some funds (particularly the odd assortment of managed funds) and invest the cash. I plan to become more disciplined in regularly investing the money I am saving. Will probably detail my investment strategy elsewhere, but it will basically be 'index-like' investments along the lines of 40% property/60% shares, 40% international/60% Australian.

Mostly planning to go the boring route and keep pumping money into those same investments.

In the next few years I will probably get a margin loan or play around with options (only with part of my portfolio).

Eventually want income from investment > yearly low. Doesn't seem like it should take me too long or be too much effort if I keep my expenses low

Seems like almost everyone has property...

 

err no. Its a thread to encourage others to invest, and what some people have achieved and are doing. Showing others how big your penis is will achieve nothing.

Whats the bet this 'friend' has nothing to show investment wise? hence his negative comment.

 

Age: 22
Investment: 0
Savings: 120-150k cash sitting in a high savings account

Not very good i know.....im trying to invest it now

 

some may argue its the best place for it at the moment....

If growth is long term average at 10%pa, and you can get about 8% risk free in a bank account then is the 2%pa really worth it...

 

22 years old with 120-150K in cash... what drugs have you been selling?

 

I am amazed at all the hundreds of thousands of dollars being invested by people under 30 (especially those under 23). What's the go? Have you all:

* Received massive inheritances (including small businesses)?
* Become doctors/lawyers?
* Started small businesses that are set to take over the world?
* Missed out on your childhoods?
* Got extremely wealthy parents? or
* Are you up to your eyeballs in debt?

I have:

* $30k invested in shares - Dad has provided $15k equity and I have approx $12k of my margin loan invested. I'm in front by $3k and I'm very proud of that ...

BTW - I'm 28 in February.

Grar Industries

 

Its all about decisions mate, they are the only thing that we all have in common (no matter our age, heritage, whatever).

While friends were bragging about their $50,000 HSV that they got a loan for the second they got a job out of high school ("I work to enjoy life, man!"), some of us were saving.

While friends were bragging about their world travels ("You gotta live life, man!"), some of us were buying our first house in the sticks because that is what we could afford ("How can you afford a property, it is sooo expensive, and I'm not living out there with the bogans, man").

While friends were loading up on 18 months interest free from Harvey Norman ("I would rather enjoy life than always worry about the future!"), some of us were buying an investment property.

Think these things make a difference over 5 years?

In five years the HSV has either been written off or is worth 20% of purchase price, while you have a loan of $30k hanging over your head, while the savings have created a buffer to withstand a disaster.

In five years the holiday is a distant memory with no chance for another until the kids are out of school. The first house is worth twice what it cost, and is no longer as "in the sticks" as it used to be, and the mortgage is now a lot cheaper than renting.

In 5 years the top of the line gear you got from Harvey's has been yesterdays news for the last 4.5 years, and they are now copping 20% a year because they didnt pay off their interest free in time, While the rental property has been the springboard into another couple of rental properties, with potential to provide for the family for the rest of your days.


The notion that "missing your childhood" or "live for the moment" has anything at all to do with being irresponsible is completely flawed.

Its all about decisions - some people decide to do what they have to do as quick as they can so they can do what they want to do as long as they can.

 

Fixed for you

I agree with Coopranos. I don't have a flashy car, I live at home still, I would never pay thousands of dollars for a TV.

Although I do disagree with the travelling part. I think it's something that shapes your life and young people should get a feel for how much better it is here in Australia. You don't need a lot of money to travel though.

 

There is travel, and there is being excessive or taking a year off to bum around. No ones way is particularly better than anyone else's, but you gotta take responsibility for your own decisions.
No one is saying it is wrong to buy a flashy car or whatever, but people have to realise the trade-off. Its all about taking responsibility for one's own decisions.
It is up to everyone to create the life they want, and then make decisions that support that life. You cant say "I am going to be super-fit", go live on Big macs and then whinge that you are fat, but that mentality is so prevelant. Look at the show The Biggest Loser. A bunch of completely lazy, obese, complete waste-of-space humans who take no responsibility for their own state, and take no resonponsibility of getting themselves to where they want to be. If they did take responsibility they wouldnt be on a reality tv show, they would be busting their overly-large guts in the gym, not whinging that "life is passing them by".
It seems to me as stupid as someone whinging about not being able to afford a house when they neglected to do so for the last 10 years, or someone complaining they cant spend time with their kids while still working 60 hour weeks.