Jeor Posted August 29, 2022 Share Posted August 29, 2022 Australian investor here; my wife and I are fortunate to be in a good financial position with surplus money for investing. While we were both working and without kids, we built up some investments (friendly competition - she has a property investment, while I've invested in equities). But now with two young children and only one of us working we're treading water financially, which we're comfortable with given the good start we had. We were both incredibly lucky to hold onto good-paying stable jobs with regular promotions during the GFC (2008-10), which allowed us to get into the property market and share market when both were at major historic lows. I know they say it's about "time in" the market more than "timing" the market, but for us that period was crucial for giving us a major boost early on. Others were not so fortunate as I had friends who lost jobs or had trouble progressing in their careers. But we got lucky. Now in Australia, Sydney in particular, housing affordability is atrocious. My wife believes in property investing; find a good agent, ride them hard, get good tenants, and then it's "set and forget" as rental income falls into your lap and the balance on the loan gets reduced over time. In Australia, there are also tax benefits as you can deduct the interest and maintenance costs from your income. Over time there is a good expectation of capital appreciation as well. I prefer the share market because I prefer the academic research on stocks (I have a maths/statistics PhD) as opposed to dealing with real-world problems with agents/tenants/maintenance issues. With kids, I haven't added any funds to my portfolio over the past few years so it's a closed system - if I want to buy some new shares I need to sell others, and I maintain some cash allocation. Gives added incentive to grow the portfolio organically. Currently its total value is around 150K. I have a one-pager of investment rules that I strictly follow (e.g. only investing in large-cap stocks, has to tick various fundamental analysis benchmarks, trailing stop-losses of 15% and picking entry/exit points on statistical trendlines). My portfolio is a mixture of individual Australian stocks and international ETFs. No crypto or alternative assets, no options/derivatives. I measure myself against the ASX200 and so far have beat the market for each of the past three years since I started taking proper records (though in 2020 I almost missed out on the COVID rally and only narrowly beat the ASX200 due to a late plunge into some energy stocks that saved my bacon!). Currently my portfolio is quite defensive, with a high cash allocation (30%) waitng to be deployed and otherwise largely defensive stocks - telco, energy, financial and some materials (which is a large component of the ASX). No consumer discretionary or tech currently. Some Vanguard ETFs too. Wade1865 1 Quote Link to comment Share on other sites More sharing options...
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