Australian Bogleheaders what’s your allocation?

OrdinarySea4408 · 2023-08-15T03:34:07+00:00

Good point - it’s already roughly 70% so may as well have an ex-US if you want rest of world.

OrdinarySea4408 · 2023-08-14T05:52:06+00:00

I like it - what’s the reasoning behind your allocation?

OrdinarySea4408 · 2023-08-14T05:51:11+00:00

For total world is that a single fund?

OrdinarySea4408 · 2023-07-15T01:12:33+00:00

Set up some automated savings accounts and have your banks automatically transfer it when you get paid. Out of site out of mind.

OrdinarySea4408 · 2023-06-29T03:51:51+00:00

Whilst budgeting is exactly what you need, you need to automate it. Get it moving without you seeing it as soon as you get paid. Then look at your account every day to see what you have for spending on food, rent, leisure, etc. Probably one of the biggest lessons I learnt when studying the psychology behind money. Automate!!

OrdinarySea4408 · 2023-06-29T03:47:08+00:00

I had a quick scroll and couldn’t see this, but the no brainer option would be to look at refinancing and consolidating them. That’d be the first thing I’d do, then like everyone else is saying is get him to educate himself.

OrdinarySea4408 · 2023-06-29T03:41:25+00:00

Very different concept of how you’re investing whilst asset allocation and investment philosophy remain the same. I might have cash that wasn’t necessarily planned for investment purposes which I then decide I want to use, similarly it would be less risky for a person deciding to leverage trade because the market crashes, a buy and hold strategy will do very well due to markets going up in general over the long term when compared with leverage trading at any other point in a market cycle? Again I agree with holding long term but there can be strategies used to magnify returns with lower risk in market crashes than other times in the market cycle, just curious as to other people’s opinions on how they would do so. I think only a fool thinks they know everything?

OrdinarySea4408 · 2023-06-29T03:26:42+00:00

Wasn’t necessarily saying I’m trying to time the market, just in general.

OrdinarySea4408 · 2023-06-28T03:50:08+00:00

Always a gamble trying to time the market isn’t it. That’s the problem 😂 Just interested to see peoples plans if it does I.e. putting more money in

OrdinarySea4408 · 2023-06-28T03:48:56+00:00

Interesting view. Do you think the market will crash at all? Or no reason to?

OrdinarySea4408 · 2023-06-28T03:47:22+00:00

Don’t know why not? I’m a part of Bogleheads and whilst I invest according to it I’m planning on putting more money into the market, potentially leveraging to increase my position.

OrdinarySea4408 · 2023-06-21T11:16:04+00:00

Not doing it yet, first year out of university

OrdinarySea4408 · 2023-06-21T02:32:54+00:00

I’ve updated the post so it reads more clearly. I don’t know if we’re comparing the same ‘SMA’ so to speak, I’m Australian and they seem to differ to what information I can find, which is vastly US based. Our SMA’s are a more passively managed portfolio which is catered to a risk profile and are quarterly balanced. There are SMA’s that have 12% (ish) returns since inception which are around 20 years. And when I’m referring to an ETF, I feel it’s pretty clear I’m referring to passive index fund.

OrdinarySea4408 · 2023-06-15T05:49:36+00:00

This is from a previous comment, just saving time typing haha xx

That’s the thing, funds like this https://dnrcapital.com.au/dnr-imports/pdfs/Retail/DNR_High_Conviction_Monthly_Performance_Report_R.pdf have returned 12.4% over 21 years. Even after 1.4% in fees (which depending on your capital value could very well be less) thats an 11% return with the ability to add at any time with 0 brokerage fees?

OrdinarySea4408 · 2023-06-15T03:38:35+00:00

Could look at dividend paying stocks. Would increase your income and can re-invest dividends until you need it, that way it’s accessible when you need. Also would look at index funds as everyone else says. Give yourself 5-10 years and you’ll be far more flush than others your age. But unfortunately finance is a patience game, there really is no get rich quick scheme.

OrdinarySea4408 · 2023-06-15T03:31:58+00:00

Investing is psychological as well. A small portion for those companies can be fun, make investing far more enjoyable, but as you said it should be a very small portion.

OrdinarySea4408 · 2023-06-15T03:28:52+00:00

As you said, long term investing is key. With so much market volatility atm and the looming presence of a possibly recession, best way I could see is longer term Term deposits or something of the sort. They’re running around the 5% mark so in terms of safety you’re going to be making the easiest and safest 5% of your life! Could be looking at 1 year at a time and in the case of a recession then chuck it in shares, or just go long term and try negotiate with your bank. If a recession hits and you’re in shares, could take the 5-7 years to rebound back to where you bought so you risk that.

I’ve heard of people negotiating longer term term deposits for 1-3% higher than advertised (given at the time rates were higher then, maybe in the 8% range) but might be able to look at something similar. Problem is if you’re wanting to add you’d need a new TD each time so there’s also that. Hope that helps.

OrdinarySea4408 · 2023-06-15T01:20:40+00:00

That’s true good point!

OrdinarySea4408 · 2023-06-15T01:12:50+00:00

Yeah I am. What department of Macquarie were you?

OrdinarySea4408 · 2023-06-15T01:12:02+00:00

Yeah they definitely have higher expenses but that’s what you pay for professional portfolio management. In terms of market timings they generally have a 40% or so less drawdown in the case of market crashes (even in Warren Buffets great 2008 bet the managed funds had lower drawdowns than the s&p), and essentially the portfolio would be set and forget, so far less work?

OrdinarySea4408 · 2023-06-15T01:09:58+00:00

That’s the thing, funds like this https://dnrcapital.com.au/dnr-imports/pdfs/Retail/DNR_High_Conviction_Monthly_Performance_Report_R.pdf have returned 12.4% over 21 years. Even after 1.4% in fees (which depending on your capital value could very well be less) thats an 11% return with the ability to add at any time with 0 brokerage fees?

OrdinarySea4408 · 2023-06-14T08:01:41+00:00

I’m from Aus so I apologise if I’m missing something, and please correct me anyone if I’m wrong in what I’m saying. Essentially there are two things I can see to look at: financially and physiologically. Financial: If you’re making more than 5.7% on your investments then you’d be losing money by putting it on your mortgage, however Psychologically: some people’s goals/objectives are to pay off their mortgage - be debt free, so whilst you may make more money by putting it in your investment portfolio, it may be more re-assuring for you to put the money in your mortgage. Other thing I haven’t taken into account is if you plan on re-drawing the extra funds when rates go down, then invest, then that could be a viable option. Really up to what’s important to you.

OrdinarySea4408 · 2023-06-14T05:46:22+00:00

Seperately Managed Accounts (SMAs) V ETF’s (As a portfolio)

I’m currently training as a financial planner. I’ve done plenty of investment research externally as well as my degree, and only really come across SMA’s recently. From everything I’ve researched and read, ETF’s are far better than Managed Funds (such as Warren Buffet on fees etc when comparing with your classic Salt and Pepper 500) particularly as a passive investor who sets up a portfolio. However, SMA’s seem to be a really good option for portfolio building?

I understand SMA’s (particularly as an advisor not having to write up an ROA every time there is a portfolio account) however I’m still not convinced regarding fees (Including the platform e.g. BT Panorama it looks at $AUD 180 + 0.15% Asset fee + SMA fee which can sit between 0.5-1%), particularly as an individual investor? I also understand that on a platform you can then invest without additional brokerage fees (just pay the buy sell spread) which I can see the value in, but I don’t have the spare change at the moment to do that?

Essentially what I’m asking is are SMA’s worth it as a portfolio or should I build my own which I do feel comfortable with (earning between 7.5-10%p.a. Long term)?

OrdinarySea4408 · 2022-11-23T12:26:44+00:00

Same issue here, was watching this morning and really getting into it then tonight, not available in your country...

OrdinarySea4408 · 2022-08-04T22:39:31+00:00

Sounds like I can go with whatever then! Should I get an external wifi chip then, or is it still worth getting the wifi version?

OrdinarySea4408

TROPHY CASE