Dear Scott, My daughter recently brought home a consent form for me to sign. Posted By: CaptainFI 8 Comments. What constitutes a lot of money is relative. He started by looking at over 315 different index style funds a combination of 201 true index-tracking exchange traded funds and also 114 index-inspired listed investment companies (LICs), and whittled them down to a final list of ten potential index funds worthy of investing in. Given the uncertainty and high amount of risk involved in crypto, it would probably be best to look somewhere else besides cryptocurrency for places to invest $10,000. Exchange-Traded share market Index funds provide diversification, are easy to buy and manage, and most have very reasonable management costs (management expense ratios). If you've been reading Barefoot for a while, you'll know that I love AFIC and Argo as investments, but everything at the right time. Ill need to think a bit more about actual percentages and weighting, but I like your noting from one of the comments on the benefits of the dividend yield for Aus funds, Your email address will not be published. Cheers. Loving your articles! Like I said, new to this. & no debt. Took me a while to have a bit of fun and finally come full circle to what actually works haha. However, there are other options. If you need help and would like to obtain personal financial advice about which investment options or platforms may be right for you, please talk to a licensed financial adviser or AFSL holder you can take the first steps to find a financial advisor by reading this interview, or by visiting theASIC financial adviser registerand searching in your area. It is packed full of great financial advice that can help you grow your wealth. Until very recently, cryptocurrency was the hot new investment that everyone wanted a piece of. Call the National Debt Helpline on 1800 007 007. In this way, I believe you're setting your portfolio up for long-term success. With a MER of .03% it is one of (if not the) cheapest ETFs on the market, and its 1, 3 and 5-year returns as of March 2020 are 5.32%, 11.91% and 10.53%, Check out my detailed review: Vanguard Total US Market. Which broker you are with at the moment. Alright, so that was a lot to get through, I know. I can only provide factual information based on my journey to Financial Independence, and that is provided for general informational and entertainment purposes only. I was under the impression we would be sent a link. If you get a mention in The Betoota Advocate it's a good indicator that you're on the national agenda and no doubt The Barefoot Investor AKA Scott Pape has taken the nation by storm, selling over 1 million copies. I have recently read barefoot investor and now keen to start investing in shares and secure our future. aaron burmeister wife; barefoot investor where you should invest $10k. To make the world smarter, happier, and richer. I have just come across Captain FI too and am finding it fascinating and very helpful to increase my (basic so far) knowledge.thank you Captain! Investing in mutual funds works like ETFs, but actively managed mutual funds have managers that pick different stocks for you. Many thanks for the thoughts and encouragement my husband and I are looking forward to diving in! The second pass analysis of the Barefoot Idiot Grandson Portfolio of index funds cut away funds based on undesirable fads and those that contained risky financial products like synthetics and derivatives. But then if that is what you want, youd just go with BlackRock iShares IVV, and pay .04% to get aus domicile and DRP. Hi Mark, I havent looked this up but Straight away the management fee is .29% is ridiculous given VTS is like .03%. The second pass also removed any outliers such as funds geared towards producing really high dividends. Which is the best direction to go if I am looking to secure a home within the next 3-5 years. The. I decided to invest in a similar way to you.. Ive gone with A200 for myself, as well as VEU & VTS and I found out that I would pay too much tax opening up a minor account for my son (something like 66% if it was to earn more than $400 per year, which it would have) so I decided to invest his money under my name (Im also using Pearler, like you do so happy I made the switch from SW), and I have bought VAS shares for him, so I can track exactly what is his. (US Only). Before you go, why not grab your FREE copy of my weekly Monday newsletter? There are some sweetheart teaser offers at the moment, like Macquarie Banks online saver, which pays 2.65% for four months before reverting back to 1.35% p.a. Let's say that you have a credit card with an outstanding balance of $10,000, that has an annual interest rate charge of 19.99%. With $10,000, there's a good case to build a bigger position in United Rentals. Youll owe income tax on the withdrawals, but there are no other penalty fees. For example, during COVID-19 a number of these small-cap stocks have suffered greatly, and many smaller businesses have even gone bust. Here are 5 options to consider. However, if youre dead set on investing in Bitcoin or Ethereum, make sure its money you can afford to lose. And now may be a great time to find these new workers. I think its easier this way, and once hes 18 or 21, I can transfer the shares to him. I think its a consequence of the awesome franking credit system, the strong Aussie dividend yields and the home bias. Real Estate Investment Trusts (REITs) are public companies that raise funds by selling shares of stock and issuing bonds, the proceeds of which are used to buy and lease out real estate assets. And during these drops, the stocks of many quality companies have fallen far more than the 10% market average. New Zealand examples of Barefoot-friendly investment options include: Smartshares, which offer 20+ ETFs focused on New Zealand and global markets and Kernel Wealth's low-fee funds. JUL 4, 2021. Best of luck mate. And over the past year, these are temporarily down due to the COVID-19 pandemic. The article then explores the practical side of things how I take Barefoot Investor index funds recommendations and actually construct and manage a portfolio. Regarding asymmetry, Taleb says, "If you make more when you are right than you are hurt when you are wrong, then you will benefit, in the long run, from volatility." After trying to stock pick, value invest, and time the market I eventually transitioned to the Barefoot Investor Index Fund portfolio in an effort to simplify my life and investments, whilst also trying to maximize returns and decrease long term risk. This has a management fee of 20 basis points (.2%). Learn More. All are owned free & clear of debt. I know it sounds like Im making you suck pea and ham soup, but make no mistake, the act of naming something is powerful. My weekly Monday newsletter has been called the finance Bible. And after the impact of inflation, the purchasing power of your $10,000 will be much less than it is today. Forex platforms sometimes offer leverage on a scale of 1:2, so for example, if you have 10000 pesos to invest in the system, your capital will read 20K. In that case, Id keep the money in a high-interest saver preferably with a bank you dont owe any money to (otherwise they may suggest you swipe it to help pay off your loans). document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Captain FI is a retired Air Transport Pilot from Australia. Hi Jack, the VPI looks like a really awesome tool. Both dividend yield and capital growth that should be considered together. You sound like you are off to a great start, but perhaps rich dad poor dad might be really helpful in establishing how powerful investing in productive assets is! It feels shit and I have got a $370K mortgage against an investment property I am developing and even that makes me nervous about potential interest rate rises etc. Investing is a long game. I have a specific question ive tried to get answered from several sources but havent had much luck. Even before recent market events, however, crypto had been seeing spectacular gains and stomach-churning losses. High-dividend stocks often suffer in terms of total return due to a lack of capital growth, a form of dividend trap. Ive signed up for notifications and will be having a good read around your site. Also, your reading list. Reason being, in the current climate theres a very real possibility that you could be underwater for many years. You've paid off your home. There are any number of ways to invest your hard-earned cash. Invest in Stocks, Mutual Funds, or Bonds. And why the hell was Phil Collins playing on the radio? Right now, Latch has a $1.8 billion market cap. I am wanting to get into the property market before the 2032 games (Im from Brissy). In terms of global funds, I go for a combo of VTS+VEU. SHARE. *Average returns of all recommendations since inception. However, with one foot in the door, Zoom has the opportunity to upsell its customers, which it's already doing quite successfully. It is for educational purposes only, and does not constitute formal financial advice. QUS looks like its changing to be similar to IVV. Check out my detailed review:BetaShares Australian top 200 index fund, Vanguard US Total Market Shares Index ETF (ASX:VTS) tracks the CRSP US total market index (approx 3500 stocks). Management fee also being reduced to .29%. Every week I publish a fun new article on a money topic I think you'll find interesting. By having cash on the sidelines and building core positions in proven winners like United Rentals and Zoom, you're in a great position to finally make some smaller bets on high-potential companies that still have a lot to prove. For investors who prefer more risk, gold futures involve a committment to buying or selling gold in the future at a specified price. I have recently set up a Commsec account and have become interested in investing for my long term financial future with the hope of setting up my son financially in 20-25 years (He is currently 3) I understand ETFs and LICS are the way to go due to a DRP and dividend strategy, but I had a couple of questions. As I say in Barefoot Step 5, once you've bought a home (though not yet paid it off), boosting your pre-tax super contributions from 10% to 15% will make a hell of a difference. But Zoom is mainly a corporate solution, with 63% of first-quarter revenue coming from companies with 10 or more employees. t save all the articles from Blueprint as I thought we were getting them bundled together. is hell house llc a true story. I have no investments whatsoever, but I do have $10,000 I could invest. How do I know? My portfolio manager has achieved some gre. I am surprised by the high allocation of Australian funds though. 2023 Forbes Media LLC. This is the most risk-free way to invest $10K - or any amount of money - and it provides a virtually guaranteed rate of return. Seems crazy to be paying like 8 times the MER for the same thing? For these reasons and more, I believe investors should consider building a position in Zoom. But for self-directed investors who want to take the time to learn about public companies and do the research, this could be a great way to invest $10,000. I had a look at the Idiot Grandson paper a while back and was surprised, perhaps even a bit reassured that the allocation I went with for Australian/International (which suits my own personal goals) was very similar to what Scott Pape proposed in that paper. This cut the list down to 60 ETFs and 10 LICs to choose from (and no I wont list them, there isSTILLtoo many).. 2. Here are five strategies to get you started. And it would have earned it with fundamental results, making it a worthy long-term holding. The free account is more than enough for the average person, but you can upgrade to a paid subscription which gives you some more features. Self-proclaimed as Australias favourite money guy, he provides no-BS personal finance advice and recommendations, and recently re-trained as a not-for-profit financial counsellor.