Asset allocation plan for starting out

[Kelvin]

Here's my current system, maybe something similar could work for you?

If I have a large amount of spare cash (a few thousand $), I buy shares. They are riskier but have offered the best returns for me.

For smaller amounts of spare cash (1-2 thousand) or if nothing interests me in the sharemarket, I'll put some in Squirrel Money, and some in a savings account to build up funds to buy shares. Drip feeding into Rabo's managed funds or smartshares ETFs could also work for these amounts of money.

For tiny amounts of spare cash (a few hundred) I put in Lending Crowd.

I've also got some RaboDirect Managed funds which I'm slowly selling (don't wanna pay 1-2% management fees when I have managed to do a lot better picking my own shares).

[justakiwi]

Here's my current system, maybe something similar could work for you?

If I have a large amount of spare cash (a few thousand $), I buy shares. They are riskier but have offered the best returns for me.

For smaller amounts of spare cash (1-2 thousand) or if nothing interests me in the sharemarket, I'll put some in Squirrel Money, and some in a savings account to build up funds to buy shares. Drip feeding into Rabo's managed funds or smartshares ETFs could also work for these amounts of money.

For tiny amounts of spare cash (a few hundred) I put in Lending Crowd.

I've also got some RaboDirect Managed funds which I'm slowly selling (don't wanna pay 1-2% management fees when I have managed to do a lot better picking my own shares).

Hey thanks for that. Squirrel Money and Lending Crowd look really interesting. My initial reaction is to feel a bit nervous about P2P lending, but I will definitely have a closer look.

[Kelvin]

Hey thanks for that. Squirrel Money and Lending Crowd look really interesting. My initial reaction is to feel a bit nervous about P2P lending, but I will definitely have a closer look.

Not an uncommon feeling to feel nervous about P2P. I put the minimum $500 in (that I could afford to lose) to test it out when I first started. The return you get does compensate for the risk though, and getting monthly payments is nice.

[justakiwi]

Not an uncommon feeling to feel nervous about P2P. I put the minimum $500 in (that I could afford to lose) to test it out when I first started. The return you get does compensate for the risk though, and getting monthly payments is nice.

Is 2 years the minimum term available? I see with Squirrel you can sell your investment if you have a financial emergency or whatever, but wondering how hard it would be to get someone to buy it given that they may be able to get a higher interest rate than what you're trying to sell.

[Kelvin]

Is 2 years the minimum term available? I see with Squirrel you can sell your investment if you have a financial emergency or whatever, but wondering how hard it would be to get someone to buy it given that they may be able to get a higher interest rate than what you're trying to sell.

Yes, that's the minimum term. I wouldn't invest in P2P if there was a chance you needed the funds before the term ended, but the secondary market is still really nice to have. As long as you invest in small amounts and at a decent rate, I think it will be fairly easy to sell your investment - right now there are over $100,000 of investor funds bidding for 5 year loans, but a $15,000 loan at 8% untouched on the secondary market

[Snow Leopard]

It is a moo point (see video) whether currency hedging is of any benefit in long term regular investing as the gains and losses tend to even out over time and you are left with an extra expense diminishing overall returns.



Best Wishes
Paper Tiger

[justakiwi]

It is a moo point (see video) whether currency hedging is of any benefit in long term regular investing as the gains and losses tend to even out over time and you are left with an extra expense diminishing overall returns.

Best Wishes
Paper Tiger

Joey and I think you're right

[peat]

Moo!! Just as well we aren't talking about mootual funds
I agree that (at least ) not all overseas investments should be hedged.

Harvey said that about Kingfisher .... I tend to agree with what he's saying though.