Investing...who does it?

[cruizer]

Hey all,

Just wondering if anyone on here invests their money. Either in the equity market (shares), debt market (bonds etc) or in derivatives? Even in superannuation?

Just thought it might be interesting to see if people are actually interested in investing or really couldn't give a crap 

[Jecks]

i invest in blue chip shares and i also contribute extra towards my super...
other then that nothing at the moment, although after i buy my first home, id like to invest in property.

[chr1S]

yea... in my car...LOL

[Colby]

Yeah i'm getting into property investment, probably do a bit of shares investment if the tips are good (my best mate is a broker).  I personally dont see the point in super investment at my age (23) the returns are pathetic compared to other investment opportunities such as shares, so use the money for higher returns then put that into super when i'm like 40.

[cruizer]

I personally dont see the point in super investment at my age (23) the returns are pathetic compared to other investment opportunities such as shares, so use the money for higher returns then put that into super when i'm like 40.

Not too sure if i agree with that. If you invest money (even a small amount) at the age of 23 it will make a huge difference. that is the wonder of compound interest  If i put $120 into my super account today it will be worth $10,000 in 30 years (thats assuming a 15% average return per annum). A small amount now could make a big difference.

But I understand why you wouldn't bother cos you don't really have access to the money now.

[Budgie]

Cruizer, I agree with you with regards to super.

I have begun to put small amounts into my super, but I do not do it regularly enough.  All of my savings goes directly into an ING account.  I have no other high-interest accounts or investments and pretty much my only assets are my cars.  So a credit/debit account, a savings account, two cars and some computers/clothes/books are all that tells you I exist

My parents have recently (last 2-3 years) started to really get into investments.  Stuffed if I know exactly where their money is, or what it is doing but they have found a financial advisor that they really like and trust and it seems to have done really well so far. With extra money being freed up for overseas trips and things like that.

I figure, the more I can save or put into my super when I am younger, the better I will be financially when I'm looking to buy a house/land or have kiddies.

[SSS]

Property.

Not a big fan of shares as a long term investment, more of a quick cash option (6-12 months) for spending on hobbies

[Luke]

Look into options, if you play it right, it's like having insurance on your shares, but you get paid monthly to have it   Come to think of it, why arent I doing this?

[cruizer]

I think the only problem with options is you have to understand what the market and/or particular share is going to do! I like the idea of them but still trying to work them out, I've read they are useful for hedging and reducing losses, so its worth looking into!

Personally I contribute a small amount monthly into super, hold some shares in BHP (15% return so far  ) and just the rest in cash, saving for more shares.

I think the main benefit of super is if you earn under $30,000p.a. the govt. will co-contribute $1.50 for every $1 you contribute, with a maximum of $1500 govt. contribution (only applies for after tax contributions). So if you look at it, you are making a gauranteed 150% return on your investment.

Sometimes I get tempted to spend it on my car but I kind of figure that if I invest now, i can buy any car I want in 10 years. my mates just tell me I'm boring 

[Ka-Bluey]

Currently im not investing into anything, i was putting money into my savings account but after the NZ trip that has gone to shits, i would like to contribute into my super, but i feel im to lazy to set it up or dont know how much to do, its just a matter of doing it i guess.

But assets in the shares markets, nah i dont think i would ever go there, just dont know what to expect (have you not seen Die Hard 4.0?)

[bogan_bob]

does the federal govt still do the co-contributions? I thought it was only up until the end of the 06/07 financial year?

I just keep my extra coin in a higher intrest account at the moment, but shortly ill be investing some of it in another import car (i should get a much better return than the intrest i currently earn).

I have also been tempted by shares but dont really know or have time to learn about the market properly. Try looking at managed funds, they sound alright and you are able to spread the risk of your (relatively) small investment over property, cash, shares etc.

But the thing to remember is that if you go looking for higher returns, its higher risk.

[hrmmmm]

I only pay into my super now, about $100 a month every month. I figure work as much as I can and save as much as I can will I am young that way when I retire hopefully I can mostly live of my super (maybe work part time).

Up until friday I had shares in AUSTRALIAN INFRASTRUCTURE CORPORATION. (AIX on the share market). I had 615 shares that cost me about $500 2.5 yrs ago. THey sold for approximately $2100 or $3.49 per share. I use the money to pay of loan and fix a few niggling problems with car before we move to queensland.
     When we move I will invest again with a managed fund so I will have shares in roughly 30 companies, this type of investing can go either way. They could all go up so I make money or they can go down and I lose my money.

I think to make your money work the bestfor you, you have to be prepared to take a few big risks, so long as you don't leave yourself short of money for day to day living I think it is allright to take a risk every now and then.

[cruizer]

The way I see it you can reduce your risk through education. But you will always have Beta Risk (market risk) that can't always be diversified away.

But the thing to remember is that if you go looking for higher returns, its higher risk.

That pretty much sums up investing!! I thought the govt. is still doing it....I could be wrong.

I only pay into my super now, about $100 a month every month. I figure work as much as I can and save as much as I can will I am young that way when I retire hopefully I can mostly live of my super (maybe work part time).

According to the ninemsn savings plan calculator you should have $226,000 at the end of 30yrs, of which you invested $36,000 and the rest is interest....sounds good hey! (thats assuming no initial deposit and 10% p.a. return)

[BILL*69]

At the tender age of 17, im not investing in anything personally at the moment.

As a family, each member is putting away small amounts of money (all four of us work), and we are going 1/4's into the property market. This means 1/4 return of any profits made (if any, that is). If we go downhill, we all go downhill.

Once Im 18 and have done what i want to do with my money,  save here and there, spend here and there, i plan to invest in the share market and a savings account at the same time. Buy shares that i think will turn out good, as well as investing into an account. But this is all in theory....

Currently in practice im just putting some money away into a 6% p.a account. Once year 12 is over, (few weeks), ill be working full time and putting more away.

I can agree with the whole mates think your boring, gay, lame. I am one of the only one's who saves their hard earned cash into an account paying decent interest, but i am also the one who spends more on his car, is never really broke etc. Ive got more to show for it.

[chr1S]

Like you bill, im the same.. I just don't have a "plan" I just work and set aside the cash for a goal in view at the time.

I don't see a point in busting your ass for 10 hours to get maybe $150 out of it which will go towards a house deposit...My view of a casual job when young = make money, have fun with it while u can, etc..

I don't think i've ever seen a kid working at woolies for a house deposit since he was 14, if so, he must have something funny about him hahaha (no offense anyway, i tried to but it's soooo boring LOL)

[cruizer]

Like you bill, im the same.. I just don't have a "plan" I just work and set aside the cash for a goal in view at the time.

I don't see a point in busting your ass for 10 hours to get maybe $150 out of it which will go towards a house deposit...My view of a casual job when young = make money, have fun with it while u can, etc..

I don't think i've ever seen a kid working at woolies for a house deposit since he was 14, if so, he must have something funny about him hahaha (no offense anyway, i tried to but it's soooo boring LOL)

Thats true about the kid working for a deposit on a house. I used to piss my money away until I was like 18. I figured it was time to save so when I get out of uni I can get a house.

[BILL*69]

Exactly. At the moment i just spend pretty much everything, just recently starting to save up money. Even worse is that my saved up money is going to bigger and better things for the car... Have to stop sometime though...

[SSS]

According to the ninemsn savings plan calculator you should have $226,000 at the end of 30yrs, of which you invested $36,000 and the rest is interest....sounds good hey! (thats assuming no initial deposit and 10% p.a. return)

Not really, unless you want to live off 2 min noodles for the rest of your life, or have another source of income...that amount of super will only last 3-5 years tops.

These days to live any sort of comfortable life style, people need to retire with 7 figure super payouts, with no additional income.

[eurisko]

And assuming your superfund hasnt eaten away at your investment through fees and charges... as they always do.

[Jecks]

And assuming your superfund hasnt eaten away at your investment through fees and charges... as they always do.

damn, what super fund are you with??
sounds like you need to shop around a bit...

[cruizer]

Not really, unless you want to live off 2 min noodles for the rest of your life, or have another source of income...that amount of super will only last 3-5 years tops.

These days to live any sort of comfortable life style, people need to retire with 7 figure super payouts, with no additional income.

Your seeming to forget the fact that as he works he will also receive the compulsary 9% payment from employers into his super fund. I was stating the simple fact that such a small contribution now can add up to a decent amount. You'd also have to be pretty stupid to not salary sacrifice alot when you get within 5-10 years of retiring.

A large majority of financial advisors and financial planners state that super is one of the best investments you can make tax wise. I figure they know what they are talking about.

[bogan_bob]

When i was 17/18, working fast food and going to uni, i was on a sparrows fart of money, there was no way on earth i could have planned to save any significnt amount of money, i struggled to keep my car running.

IMO theres no real point to trying to save money til your early - mid 20s, after you have finished any study/training. Whether it be uni or a trade, you're earning bugger all, you may as well just enjoy yourself and wait til you start getting a proper income.

But that said, when you get a bigger income, you also spend more on rubbish (ask me how ).

[Budgie]

These days to live any sort of comfortable life style, people need to retire with 7 figure super payouts, with no additional income.

Spot on Adam.

My grandma has recently moved into an 'aged car facility'... more like a country club where she is .  Anyway, her money is slowly drying up and at the end of next year my parents will have to decide whether to rent out her old home, or to sell it (quiet, leafy part of East Geelong) because her money is drying up due to the cost of the place she is at, but she is VERY happy there.

Which sucks, as my bluebird is currently sleeping in her place's garage!!!

The end of next year thing has got something to do with the amount we pay to keep her in the aged care facility and links to her pension and assets (like the house)... Things will get more expensive if we don't do something with the house.

Hopefully, next year I will be living there with a close friend and the money we pay for rent will keep my grandma in her aged care place comfortably and we will get relatively cheap rent... and a place for the bluebird to sleep

[Febrile]

If you are still young and have many years to go before retirement, it is a good idea to switch your superannuation to a high-risk, high-growth plan - the value of your super fluctuates more, but in the long term the gains are better, and since you're young, the fluctuations don't matter for you. 

I've made co-contributions for the last 3 years (if you deposited in the 05/06 year, the govt. put in another 1:1 contribution as part of the budget this year), and I've also switched to a high growth plan, which is supposed to yield 12% thereabouts.

[Resin]

I think getting into a reqular saving habit when ur young gets u into a good habit for the rest of ur life. Even if you dont earn that much money. As i saved abit by the end of school i started getting interested in shares. Telstra 2 was the first (but not very good.) i lost money on it. But i ahve been hooked on shares since then and now having more money i got into it in a much bigger way this time last year. I enjoy it much more than say just a savings account (ING) although that is good to have to.....gotta have cash, its all part of investing.

And as narxysus said about HIGH RISK super that is also a very good option and also the gov co-contributions part. Free money, excellent returns, just by putting a little bit of ur money in. I think now its even better ie if you earn under a certain amount, u put in 1000 after tax government puts in 1500 .....pretty dam good if u ask me but yes u dont ahve access to it untill u retire. Also if ur on a low income supporting a family this could be quite hard to achieve.

[Budgie]

Spot on.  I was trying to find $800 just before the end of the last financial year to whack into my super, so I got the highest gov co-contribution but that much money was to hard to find at that time of year for me.  On a tiny wage and back @ uni this year.

I should taken some out of my ING account and used that, but as Resin just said; the fact that the money is there NOW in a cash account and 40+ years into the future in a super account stopped me from doing it.

My super annuation is 'extremely high risk'... or so Vic Super calls it   Very happy with them as a company.  14% return last year.

[Rake]

These days to live any sort of comfortable life style, people need to retire with 7 figure super payouts, with no additional income.

Doesn't look like a bright future for us, does it

[cruizer]

All I can say is go BHP!!! 

[BILL*69]

All I can say is go BHP!!! 

Whats the good news my friend? How are you faring? Chat on msn again if youd like, you know im interested

[I'm what Willis was talkin' 'bout]

I work in the superannuation industry, have done so for the last 6-7 years, and I have to say it is the most tax effective savings strategy that you will find regardless of age/income/etc.  It shits all over shares, cash, property (dependant on variables though), etc.

At the end of the day, super is here to stay, and Australia's retirement income system is world leading and a model that other countries are trying to follow....it is somewhat over regulated though....Basically, it is set up to ensure retirement income so that when people like us hit retirement age the government will not have to provide us with an age pension.  Yes, you will pay 15% contribution tax on monies entering the fund, but if you retire at 60 you will receive your entire balance tax free and not as declarable income.  It does have social security assets implications, but that's another story.

If you at age 18-19-20 can manage to throw even an extra $10 a week into super, you will be so much better off than the person who doesn't.  As mentioned earlier, compound interest is the key.

Ignore the industry super fund ads on TV, the one's about how they don't pay commision to financial advisors and all profits go to members.....who do you reckon is paying for those ads?

I laugh every time those ads come on TV.

That was my shitful lecture for the night, can't be assed typing any more crap.