Basic investment

Hi. So I have $40k in a savings account, no debt or other assets. I'm winding up business as a sole trader and continuing with studies and travel. I'm 28, single as far as finance is concerned, and live cheaply in general. I expect austudy will go a 'reasonable' way towards covering weekly expenses. Have money in the family to cover short term issues if it really became necessary. I'm not risk averse. I'd like to get some of the money working a bit harder for me.

Have done a few days worth of reading trying to penetrate a previously entirely unknown side of life to me, would love a little thought from more experienced and knowledgeable folk at this point

Current thoughts are a macquarie prime account with $25k in STW and $5k in some variety of unhedged international etf, geared to 50%, leaving the rest in savings. May make sense to have the lot in the prime account though, am unsure.

This seems riskier than most investment advice I read, I imagine there are good reasons for that that I'm yet to work out

The low cost of index tracking etf's is appealing, though if there is some way to usefully diversify with a managed fund or other option then great.

Anywhere that mentions international shares also talks about the more complicated tax ramifications, but I've been unable to find anywhere that provides basic info on just what they are.

I guess most people with this level of knowledge just talk to an accountant or financial planner, but I believe in the long term benefits (knowledge gained, money saved) of diy, generally

Sorry if this is the wrong section for this, figured since I expect to focus on shares this was the best option. Cheers for any thoughts, on any aspect of this.

Charlie

 

Hi Charlie

Here's a bit of research you might like to do. Google:

lazy portfolios bogleheads
lazy portfolios
modern portfolio theory
efficient frontier
index funds forum
exchange traded funds
Vanguard

& moneychimp.com



Cheers Johny.

 

Hi Charlie,

You might want to speak to Centrelink re:

Austudy - income and assets

Cheers,

Dan