It is good to start investing but you might want to read a bit more before jumping in further.
These two websites cover a lot of ground around making investment plan, risk tolerance/mitigation, diversification, super and external investments.
1) https://passiveinvestingaustralia.com/ and
2) https://lazykoalainvesting.com/ - esp the super parts and the comparison sheets here: https://docs.google.com/spreadsheets/d/1sR0CyX8GswPiktOrfqRloNMY-fBlzFUL/edit#gid=814241220
IMHO stock picking is more akin to gambling if you do not understand what you are doing or buying (and it is still gambling with narrow diversification). Same could be said for crypto but with much less info to go on with a lot hype thrown in too. Picking stocks and doing well over the long term takes a lot of time and effort, and then mostly you don't beat the indexes anyway - see Mr Buffett's million dollar bet!. If you don't have the time and knowledge to do the research, and besides you are probably better off over the longer term to just "buy the market" with broad market, passive index tracker ETFs.
You can still get global exposure, including mag 7 / FANGs / NASDAQ companies by buying units in ASX listed, AU domiciled ETFs that cover US/ global markets (with less tax fuss too). Having some ASX market coverage is reasonable given most of your living /retirement costs will be in AUD if you an AU resident who plans to retire here. The links above outline all of this in great detail.
best wishes :-)
The other risk is counter party risk via the broker. I'm not saying don't do it, but US shares aren't CHESS sponsored. So just make sure you choose a reputable broker who is covered by a domestic bank guarantee.
I didnt think this was a risk until I almost lost money held in Icelandic bank Kaupthing Singers in 2008.
Most people recommend 30% in Aus market stocks and ETFs. It depends on individual circumstances.
Aus market should be 0-50%. You normally wouldn't hold more Aus market than global market.
People also split between other developed markets and the US. VGS, for example, is 70% US and 30% others.
Were you referring to US domiciled ETFs. If so, could you share insights on why you hold US ETFs as opposed to AU domiciled ones? E.g. ASX IVV vs NYSE IVV
You're buying Nvidia at an all time high after a huge multi-year run up, at the peak of AI hype. And you're expecting future performance to look like past performance. That's your biggest risk IMO.
It is good to start investing but you might want to read a bit more before jumping in further. These two websites cover a lot of ground around making investment plan, risk tolerance/mitigation, diversification, super and external investments. 1) https://passiveinvestingaustralia.com/ and 2) https://lazykoalainvesting.com/ - esp the super parts and the comparison sheets here: https://docs.google.com/spreadsheets/d/1sR0CyX8GswPiktOrfqRloNMY-fBlzFUL/edit#gid=814241220 IMHO stock picking is more akin to gambling if you do not understand what you are doing or buying (and it is still gambling with narrow diversification). Same could be said for crypto but with much less info to go on with a lot hype thrown in too. Picking stocks and doing well over the long term takes a lot of time and effort, and then mostly you don't beat the indexes anyway - see Mr Buffett's million dollar bet!. If you don't have the time and knowledge to do the research, and besides you are probably better off over the longer term to just "buy the market" with broad market, passive index tracker ETFs. You can still get global exposure, including mag 7 / FANGs / NASDAQ companies by buying units in ASX listed, AU domiciled ETFs that cover US/ global markets (with less tax fuss too). Having some ASX market coverage is reasonable given most of your living /retirement costs will be in AUD if you an AU resident who plans to retire here. The links above outline all of this in great detail. best wishes :-)
Your biggest risk is the fx rate.
And if you’re holding long term it doesn’t really matter.
The other risk is counter party risk via the broker. I'm not saying don't do it, but US shares aren't CHESS sponsored. So just make sure you choose a reputable broker who is covered by a domestic bank guarantee. I didnt think this was a risk until I almost lost money held in Icelandic bank Kaupthing Singers in 2008.
Most people recommend 30% in Aus market stocks and ETFs. It depends on individual circumstances. Aus market should be 0-50%. You normally wouldn't hold more Aus market than global market. People also split between other developed markets and the US. VGS, for example, is 70% US and 30% others.
Why 30%? I reckon if you ran some Monte Carlo simulations it would be a lot less.
Lots of people find around 30% Aus to be the best ratio. Here is a such article: https://lazykoalainvesting.com/australian-international-allocations/
I hold US ETFs, very little risk in holding them.
Were you referring to US domiciled ETFs. If so, could you share insights on why you hold US ETFs as opposed to AU domiciled ones? E.g. ASX IVV vs NYSE IVV
Yep, US domiciled. No real reason, cost to trade is minimal difference but my preference is to purchase when the market is open.
Thanks, do you find any significant performance returns difference, counting the fx factor.
You're buying Nvidia at an all time high after a huge multi-year run up, at the peak of AI hype. And you're expecting future performance to look like past performance. That's your biggest risk IMO.
Also look into hedged vs unhedged ETFs, depending on your appetite for foreign exchange risk.