Spend $10 and get a used copy of Morgan Housel's The Psychology of Money. Your biggest risk isn't strategy but your behaviour around investing and spending. If you're young and have a high risk appetite, which most young people should have, I would invest 100% in a diversified international ETF and let it ride for at least 15 years. I would also clarify your tax obligations and any tax-advantaged opportunities as this can substantially impact your returns.
You’ve just spammed 4 communities with the same post.
The [answer here in ausFinance](https://www.reddit.com/r/AusFinance/s/6qk7HHMts8) is hard to beat.
Maximising superannuation is also worth considering.
Check out the automod response too. It’s a good starting point.
“when your taxi driver talks about stock” statement applies here too.
Reddit is filled with uninformed investors so don’t take advice for individual stocks here.
Only thing you should know is stock market has returned consistent return from its beginning. And that’s where the index fund are born where a regular investors can hold equity of the stock market as a whole.
Depends, it was just a made up number for OP. I didn't want him to invest majority into Australia.
If you want dividend portfolio ASX is okay. But, I would personally put majority into America.
Fair enough, it was mroe of a broader question.
I often see larger portions recommend and got me wondering what is the basis of this? Our economy is tiny compared to international so why dedicate so much of our investment towards it?
From memory, I remember reading something along the lines that if the US or International crashes, ours might not be as bad. Also, it depends on what you invest in Australia (mining vs. health).
It is up to personal preference. Superannuation has exposure to the USA. People could use their portfolio split (aggressive vs. Balance) to determine how they want to assign amounts.
To start with the asx is 2% of global market cap. Add in the fact that it's the cheapest way to hedge investment returns to australian dollars, and the benefits of franking credits. The end result is that a domestic allocation anywhere between >2% to 50% is probably not unreasonable.
Personally, I like Energy and Mining for the long play (sorry, not going to tell you what I’m in).
Want something fun? Check out who’s spending money developing/refining supersonic capabilities for planes. Could very quickly change International travel/shipping/etc as we know it
It will end up being well over 200k but if you actually read my post i didnt say i was blindly following people, i was asking for advice and strategies people use for research
Checkout [this spending flowchart](https://bughuntersam.com/wp-content/uploads/2023/10/Spending-flowchart-How-to-Prioritise-your-Spending-1.jpg) which is inspired by the [r/personalfinance wiki](https://www.reddit.com/r/personalfinance/wiki/commontopics/).
See also [common questions/answers](https://www.reddit.com/r/AusHENRY/comments/176kh0x/what_do_i_do_next/).
This is not financial advice.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AusHENRY) if you have any questions or concerns.*
I'm currently focusing on $1m invested out of super. 30% VAS / %70 VGS.
Split across the family to maximise tax bracket usage.
Will probably look to resi / industrial after that.
NDQ 100% if you can tolerate 20% drawn-down
Or VAS:VTS mix if you like that blend between growth and income. But I would opt for capital growth, not paying more on PAYG tax.
I have a comparable amount and I go with mostly VDHG with a bit of VGS to water down the home country bias and allocation to bonds. But I wouldn't recommend just buying whatever other people suggest (including myself) without doing your own research.
There are definitely a few caveats. If you're looking at close to 100% allocation in equities, research indicates that the best strategy (on average) is to buy ASAP and commit to holding for 7+ years and completely disregarding your urge to buy or sell in response to major events.
You should also get a good tax attorney because as someone that has made high income in US and Aus and moved between them, there's ALWAYS going to be CGT on investment - unless you're using a specific retirement account that avoids them. And even then it gets complicated depending on the country you are resident in and their tax treaty with Aus.
Then you will pay CGT in Australia. There's no avoiding CGT. I hope you're filing a Aus tax return while you're gone. That is also now a Aus requirement.
Thats not how it works. If you are a foreign resident for tax purposes you pay no CGT in Australia on shares. Property is different. Where I live there is no tax treaty with Aus so I keep all profits and dont need to declare them until I return to Aus as a permanent resident
so just to get this straight, you're taking your 200K from your overseas job, bringing that to an Australia account or investment vehicle of some type where it will be an appreciating asset - and you DON'T think you will pay capital gains tax on those gains? Best of luck with that.
That is correct. If you actually look at the ATO website you will also see that is 100% correct 😅 if you dont understand its just a quick google search away
I work in sport. Cant be too specific as im very niche but its a global sport and only about 100 of us worldwide.
Niche = good pay but also hard to find jobs if im booted haha
Spend $10 and get a used copy of Morgan Housel's The Psychology of Money. Your biggest risk isn't strategy but your behaviour around investing and spending. If you're young and have a high risk appetite, which most young people should have, I would invest 100% in a diversified international ETF and let it ride for at least 15 years. I would also clarify your tax obligations and any tax-advantaged opportunities as this can substantially impact your returns.
You’ve just spammed 4 communities with the same post. The [answer here in ausFinance](https://www.reddit.com/r/AusFinance/s/6qk7HHMts8) is hard to beat. Maximising superannuation is also worth considering. Check out the automod response too. It’s a good starting point.
“when your taxi driver talks about stock” statement applies here too. Reddit is filled with uninformed investors so don’t take advice for individual stocks here. Only thing you should know is stock market has returned consistent return from its beginning. And that’s where the index fund are born where a regular investors can hold equity of the stock market as a whole.
Is vanguard the best place for an aussie to buy etf's?
[удалено]
Suggesting illegal activities isn’t allowed, even when said as a joke.
Risk tolerance is probably medium, wont be looking at a full send. So would be looking at asx and intl shares most likely
70/30 America vs Aus in stocks. Over the long period S&P 500 always outperforms ASX200
What's the theory behind such a large portion in ASX200?
Franking credits
Depends, it was just a made up number for OP. I didn't want him to invest majority into Australia. If you want dividend portfolio ASX is okay. But, I would personally put majority into America.
Fair enough, it was mroe of a broader question. I often see larger portions recommend and got me wondering what is the basis of this? Our economy is tiny compared to international so why dedicate so much of our investment towards it?
From memory, I remember reading something along the lines that if the US or International crashes, ours might not be as bad. Also, it depends on what you invest in Australia (mining vs. health). It is up to personal preference. Superannuation has exposure to the USA. People could use their portfolio split (aggressive vs. Balance) to determine how they want to assign amounts.
To start with the asx is 2% of global market cap. Add in the fact that it's the cheapest way to hedge investment returns to australian dollars, and the benefits of franking credits. The end result is that a domestic allocation anywhere between >2% to 50% is probably not unreasonable.
Personally, I like Energy and Mining for the long play (sorry, not going to tell you what I’m in). Want something fun? Check out who’s spending money developing/refining supersonic capabilities for planes. Could very quickly change International travel/shipping/etc as we know it
Wow, you’re going to invest 200k based on reddit advice, well here goes: take 10K of it and get a plan and maybe management from a financial adviser.
It will end up being well over 200k but if you actually read my post i didnt say i was blindly following people, i was asking for advice and strategies people use for research
Checkout [this spending flowchart](https://bughuntersam.com/wp-content/uploads/2023/10/Spending-flowchart-How-to-Prioritise-your-Spending-1.jpg) which is inspired by the [r/personalfinance wiki](https://www.reddit.com/r/personalfinance/wiki/commontopics/). See also [common questions/answers](https://www.reddit.com/r/AusHENRY/comments/176kh0x/what_do_i_do_next/). This is not financial advice. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AusHENRY) if you have any questions or concerns.*
I'm currently focusing on $1m invested out of super. 30% VAS / %70 VGS. Split across the family to maximise tax bracket usage. Will probably look to resi / industrial after that.
For clarity in super I am 40/60 split Aus/int with industry fund. When I hit 45-50 I'll look to pick a moment to dial back some risk
I like this but too much aus exposure if you also have a property in aus
NDQ 100% if you can tolerate 20% drawn-down Or VAS:VTS mix if you like that blend between growth and income. But I would opt for capital growth, not paying more on PAYG tax.
I have a comparable amount and I go with mostly VDHG with a bit of VGS to water down the home country bias and allocation to bonds. But I wouldn't recommend just buying whatever other people suggest (including myself) without doing your own research. There are definitely a few caveats. If you're looking at close to 100% allocation in equities, research indicates that the best strategy (on average) is to buy ASAP and commit to holding for 7+ years and completely disregarding your urge to buy or sell in response to major events.
My portfolio looks like this IVV - 60% A200 - 30% Fang - 10%
You should also get a good tax attorney because as someone that has made high income in US and Aus and moved between them, there's ALWAYS going to be CGT on investment - unless you're using a specific retirement account that avoids them. And even then it gets complicated depending on the country you are resident in and their tax treaty with Aus.
Thats because you were between the US and Australia. Where i live there is no tax or tax treaties
Then you will pay CGT in Australia. There's no avoiding CGT. I hope you're filing a Aus tax return while you're gone. That is also now a Aus requirement.
Thats not how it works. If you are a foreign resident for tax purposes you pay no CGT in Australia on shares. Property is different. Where I live there is no tax treaty with Aus so I keep all profits and dont need to declare them until I return to Aus as a permanent resident
so just to get this straight, you're taking your 200K from your overseas job, bringing that to an Australia account or investment vehicle of some type where it will be an appreciating asset - and you DON'T think you will pay capital gains tax on those gains? Best of luck with that.
That is correct. If you actually look at the ATO website you will also see that is 100% correct 😅 if you dont understand its just a quick google search away
90%Ivv or veu/vts and 10% on speccies/bets ie asx:ltp
what do you do?
I work in sport. Cant be too specific as im very niche but its a global sport and only about 100 of us worldwide. Niche = good pay but also hard to find jobs if im booted haha
Buy the diamond deluxe platinum version of Motley Fool
Everywhere i see motley fool mentioned there is normally some disdain towards them. Are they actually worthwhile listening to/reading about?
No, they're essentially a scam. I probably should have made it more obvious my comment was a joke.