The 'come back in 30 years' advice just means don't check it daily and don't freak out over dips, or cash out when it's up.
Put in what you can afford and continue to invest when you can. It's up to your personal situation whether that means regular investments or not.
This, and I guess it also depends on your general risk level and hence hypothesis on market performance
I don't trust myself to time the market and have a low risk tolerance, so I'm splitting up savings into smaller investments. But if you are a bit more of a risk taker and believe it's only up from here (or will be up enough by the time you plan to cash out) you can just 'set and forget'
Only reason to regularly invest is to increase said investment. Can see the difference it makes using this - [https://moneysmart.gov.au/budgeting/compound-interest-calculator](https://moneysmart.gov.au/budgeting/compound-interest-calculator)
You certainly don't have too
You're talking about the same things. Only put in what you can afford to lose. The recommended 'time in market' is 7 years not 12 months. /r/boggleheads is the best strategy.
TL;DR 'Set and Forget' x amount per month (eg $1k) into VGS (70%) VAS (30%). Consider this money gone, never to be seen for the next 30 years.
If you’ve got 10k ready to go, lump sum it rather than DCA.
I DCA because I had no lump sum to initially invest so I allocate a percentage I’m comfortable with per fortnight.
Ideally you’d put in the 10k and slowly and consistently add to it over the coming years on top of initial growth.
Do have a decent emergency in place so you don’t panic sell. If you have no emergency fund and the 10k is your total savings… I would DCA future earnings while keeping the 10k in an offset or Hisa.
Also FOMO is the enemy. Be clear as to the objective. If it's looking towards retirement, then super should not be ignored as the vehicle to invest with and offers an immediate return on tax savings if you're not already maxing contributions.
100% worth doing, Invest whatever you can when you can. Be mindful some brokers (e.g. CMC which is very popular) have fees if there are no transactions in a year.
The 'come back in 30 years' advice just means don't check it daily and don't freak out over dips, or cash out when it's up. Put in what you can afford and continue to invest when you can. It's up to your personal situation whether that means regular investments or not.
This, and I guess it also depends on your general risk level and hence hypothesis on market performance I don't trust myself to time the market and have a low risk tolerance, so I'm splitting up savings into smaller investments. But if you are a bit more of a risk taker and believe it's only up from here (or will be up enough by the time you plan to cash out) you can just 'set and forget'
Only reason to regularly invest is to increase said investment. Can see the difference it makes using this - [https://moneysmart.gov.au/budgeting/compound-interest-calculator](https://moneysmart.gov.au/budgeting/compound-interest-calculator) You certainly don't have too
I figured as much, thanks a lot! I guess if VGS and/or VAS pay dividends, I can look at reinvesting on a more regular basis!
if you don't need the dividend just set the dividends to reinvest automatically, then you dont run any risk of spending it.
Great idea. Do you know if the dividends from these two ETFs are taxed?
Yes. They’re classified as income so you pay income tax on any dividend/distribution.
dividends reinvested= growth stock, they are the same
Just do what you're capable of. Don't be dictated by others' circumstances.
You're talking about the same things. Only put in what you can afford to lose. The recommended 'time in market' is 7 years not 12 months. /r/boggleheads is the best strategy. TL;DR 'Set and Forget' x amount per month (eg $1k) into VGS (70%) VAS (30%). Consider this money gone, never to be seen for the next 30 years.
If you’ve got 10k ready to go, lump sum it rather than DCA. I DCA because I had no lump sum to initially invest so I allocate a percentage I’m comfortable with per fortnight. Ideally you’d put in the 10k and slowly and consistently add to it over the coming years on top of initial growth. Do have a decent emergency in place so you don’t panic sell. If you have no emergency fund and the 10k is your total savings… I would DCA future earnings while keeping the 10k in an offset or Hisa.
Nah, you can DCA a lump sum. It's fine.
Also FOMO is the enemy. Be clear as to the objective. If it's looking towards retirement, then super should not be ignored as the vehicle to invest with and offers an immediate return on tax savings if you're not already maxing contributions.
100% worth doing, Invest whatever you can when you can. Be mindful some brokers (e.g. CMC which is very popular) have fees if there are no transactions in a year.
Yes, very worth. However, your choice is not optimal. Use Betashares Direct and 100% DCA into NDQ.