how do you invest ?

[mumof2]

I really want to learn how to invest for ourselves...without using a banker or someone...how do people learn about stocks and how to invest them? We live in Australia so maybe a little different but would love to learn this but there is so much different information out there it becomes overwhelming...and tips for someone who wants to learn about this and do it themselves...or is it just to much and I shouldn't bother??

[disneysteve]

or is it just to much and I shouldn't bother??

Absolutely not. Basic investing is not that difficult. I'm not familiar with what options are available to you in Australia and how that differs from the US, but as little as a single mutual fund can be all you need. At most, 3 mutual funds (one US stock, one International stock, and one bond) can give you a well-diversified portfolio. And there are endless resources for helping you determine what percentage to put in each of those three places based on your age, risk tolerance, and goals.

The first thing you need to nail down is what it is you are investing for. Retirement investing is different than saving up a down payment for a new house or your next car. For long term like retirement, you need to learn about what options are available in Australia. In the US, we have some plans that go through our jobs, like a 401k or 403b that have various tax advantages. Outside of work we have IRAs which also have some tax advantages. Employers often match part of what we contribute to the work plans. I don't know if anything like that exists for you.

I actually have a good friend who is an accountant in Australia. I'll have to ask her about this.

[mumof2]

We have our superannuation which emplyers contribute to and with chronic illness I can't work anymore and haven't been able to for a few years but I would like to increase for my retirement (Im almost 50) so would like to invest in some shares...I just have no idea where to start with doing a portfolio ourselves

[Petunia 100]

Carefully.

Investing can be super complicated, or it can be incredibly simple. Fortunately, a simple strategy can yield lovely results.

I began learning by reading on http://www.morningstar.com, back before anyone had ever hear of blogging. Nowadays, I suggest the book The Simple Path to Wealth by J.L. Collins, available on Amazon and possibly at your local public library. Everything in the book is available on his blog https://jlcollinsnh.com/ free of charge, it's just not organized as succinctly.

[disneysteve]

We have our superannuation which emplyers contribute to and with chronic illness I can't work anymore and haven't been able to for a few years but I would like to increase for my retirement (Im almost 50) so would like to invest in some shares...I just have no idea where to start with doing a portfolio ourselves

For retirement, mutual funds or exchange traded funds (ETFs) are the way to go,not individual shares of stock. Funds get you broad diversification from the start which generally reduces the overall risk of your portfolio. But again, I don't know what you can and can't invest in from Australia. In the US, there are now numerous companies that offer exchange traded funds with zero commission which is awesome.

[mumof2]

I will start looking into it

[cypher1]

For retirement, mutual funds or exchange traded funds (ETFs) are the way to go,not individual shares of stock.

If you're new to investing I would agree with disneysteve with starting out with MFs and ETFs. Everyone is different with risk tolerance, and picking and tracking individual stocks is too much work for me, personally. Starting with your age, I would recommend figuring out your tolerance, and number of funds to use in your portfolio based on comfort level.

Some good links you may want to check out:

https://millennialmoney.com/investment-strategy/

https://www.wallstreetphysician.com/building-vanguard-three-fund-portfolio-simple-index-fund-portfolios/

https://mymoneywizard.com/how-to-choose-a-vanguard-index-fund/

[mumof2]

thankyou all going to start researching and see how we go...

[disneysteve]

I asked my Aussie friend. She was no help at all and isn't familiar with Australian investment options. Then I did some online searching and found that mutual funds/ETFs are available there as well, including index funds.

Vanguard, the 2nd largest mutual fund company (after Blackrock) has an Australian division. https://www.vanguardinvestments.com....l/homepage.jsp
I would say that's a great place to start and they probably have everything you would want.

[mumof2]

thanks disneysteve will look into it