Investing Smartly

[HBFlanker]

Hey guys

Currently im 22 years old, finished my degree, Stable Job, Decent Coin.
I have just been given a year off my job to go travelling with the guarantee of the same position when i return.

My Long term plan is to buy a house when in the beginning of 2019. So here is My plan.

I want to invest $1000 per month into the stock market (mixed portfolio) over 60 months. This will begin in January 2014 when i get back from O/S and im back on my feet, and finish at the end of 2018. My questions are:

Am i better off investing the money myself using e trade or westpac trading accounts, Or using a professional?

And

Would i be better of using term deposits and savings accounts and watching the interest grow?

 

[Selective Retention]

So are you starting from scratch when you get back from o/s?

The stock market is not something that you would invest $1000 per month every month in, you'd be copping it in transaction costs.

I'd be saving parcels of 10k min before stuffing around with the share market, and even then that's managed fund territory rather than hand picking stocks if you want it to be diversified.

 

[HBFlanker]

Yeah i was thinking that might be the case. Saving in blocks of 10k is an option i thought of.

I definitely want to hand pick stocks, Ive got managed funds already.

 

[Visions]

Whatever method you choose, you would probably need to keep in mind that as the years go on, your pay should theoretically increase allowing you to save and invest more which you may have to do. The reason being that 2019 is 7 years away, and it may come to pass that house pricing is at a point where a larger deposit may be needed than first thought.

 

[Selective Retention]

Or the stock market tanks right when you are ready to buy, which is another thing to take into consideration.

 

[HumphreyShoulders]

I recommend you open at some online brokerage firm (you mentioned eTrade) and subscribe to a good newsletter. Check out Casey Research. Normally, brokers don't know any better. And most are oblivious to the financial problems of today.

Even with a great newsletter subscription, you still need to read a lot about investing. For instance, stocks aren't always the best option.

In addition, the mental attitudes required can only be taught by experience itself. Just be open and don't sweat it too much!

 

[meowis]

Very good recommendations