Thought I'd just bring a few points into the discussion, which I think are worth mentioning. The purpose of my original exercise was to use long term averages as an indicator for risk vs (possible) return.By long term, I mean 20+ years. You also may consider 40% of your equities allocation in the concentrated Australian market to be more concentration risk than you consider reasonable. Do you know what the fund codes are for the wholesale equivalents? Also note that the total global equities (combined hedged and unhedged) is in cap weighted proportions, which means they have maintained market-priced proportions of large, medium, and small companies in 45 developed and emerging countries - avoiding active management risk of trying to guess which asset classes will do what in the future. Investors on high tax brackets should be aware of and consider this. You can spend your time focusing on your career and other non-financial parts of your life such as your family, travel, hobbies, and so on.
5. Cause on 1 million you will get 40-50k in dividends, so you'd have to spend all that before you even get to selling some of your principle at temporarily low prices. https://www.vanguardinvestments.com.au/retail/ret/investments/product.html#/productType=etf. For example, in recent years the Australian stock market has underperformed whereas foreign stocks (particularly US stocks) have done very well.
Looking for Yield in Emerging Market Bonds (ASX: EBND), Living off Dividends vs the Four Percent Rule – Part 2, More Thoughts on Remote Working during the COVID-19 Crisis, The Impact of Coronavirus on Financial Independence, Commitment Phobia and Early Retirement as an Escape from Responsibilities, Follow I Live Off Dividends on WordPress.com. This makes VDHG superior, as your returns will certainly be higher with VDHG; barring the complete destruction of the public companies on the stock market. If I were looking at having a portfolio larger than $5k, I would also look at creating the portfolio myself (e.g. ._2a172ppKObqWfRHr8eWBKV{-ms-flex-negative:0;flex-shrink:0;margin-right:8px}._39-woRduNuowN7G4JTW4I8{border-top:1px solid var(--newCommunityTheme-widgetColors-lineColor);margin-top:12px;padding-top:12px}._3AOoBdXa2QKVKqIEmG7Vkb{font-size:12px;font-weight:400;line-height:16px;-ms-flex-align:center;align-items:center;background-color:var(--newCommunityTheme-body);border-radius:4px;display:-ms-flexbox;display:flex;-ms-flex-direction:row;flex-direction:row;margin-top:12px}.vzEDg-tM8ZDpEfJnbaJuU{color:var(--newCommunityTheme-button);fill:var(--newCommunityTheme-button);height:14px;width:14px}.r51dfG6q3N-4exmkjHQg_{font-size:10px;font-weight:700;letter-spacing:.5px;line-height:12px;text-transform:uppercase;display:-ms-flexbox;display:flex;-ms-flex-pack:justify;justify-content:space-between}._2ygXHcy_x6RG74BMk0UKkN{margin-left:8px}._2BnLYNBALzjH6p_ollJ-RF{display:-ms-flexbox;display:flex;margin-left:auto}._1-25VxiIsZFVU88qFh-T8p{padding:0}._3BmRwhm18nr4GmDhkoSgtb{color:var(--newCommunityTheme-bodyText);-ms-flex:0 0 auto;flex:0 0 auto;line-height:16px} over the same period, all divvies reinvested. However, more important than what you invest in, in my opinion, is the “buy and hold” mentality. It spent most of that time substantially in negative territory, only recovering late last year.
For example, if you’re 30 then hold 30% VDCO and 70% VDHG. https://www.vanguardinvestments.com.au/diversified. Whipsaws and hopping out of the market when there's bad news. You will get a better return from that than anything out there. The Vanguard diversified funds are inflexible for these customisations. VDHG (High Growth) is 90/10 VDGR (GRowth) is 70/30 VDBA (BAlanced) is 50/50 The equity portion in each of the diversified funds is the same and split between about • 40% VAS • 15% VGAD • 30% VGS • 8% VISM • 7% VGE So it is a nice mix between diversification, home currency upside and downside risks, cost of hedging, and franking credits. These should all be considered long term investments, if you need access to your funds in the short term most would suggest leaving your money in cash. Because of this, investors should consider placing trades with a limit order, ensuring the market maker has sufficient time to create new units when purchasing. Does this mean my quarterly dividend is only worth $28 and therefore I will obtain not even 1 new share ? From the point of view of the investment mix, this can look like switching from a growth mix to a more defensive mix, but in absolute terms the exposure is usually not decreasing. But I don't buy diversified funds for the returns. eInvest brings ethical investing to small caps with IMPQ, PM Capital brings innovation to LICs with PTrackERS, WAM Leaders IPO: The latest LIC from the Wilson stable, Morphic Ethical Equities Fund (MEC) takes ethical investing to a new level, Betashares Australia 200 ETF (A200) brings extreme low cost ETFs to Australia, The lowest cost ETF portfolio available on the ASX, New Fixed Interest ETFs expand options for investors, Betashares & Legg Mason launch income focused ETFs, Never miss an update. Would you prefer active or passive management? What if the market crashes just before you are about to buy your house? New comments cannot be posted and votes cannot be cast. Although not exactly conforming to “age in bonds”, “age in VDCO” is a simple alternative rule-of-thumb.
To make it more obvious, what they have is.
LICs - are they all they're cracked up to be? These Vanguard diversified ETFs diversify across just about all asset classes (e.g. Out of curiosity how much of a return were you expecting ? planning to buy a house, start a family etc. Vanguard Investments, one of the biggest ETF providers in the world yesterday launched four new ETFs. In regards to the latest dividend of 28 cents per unit, I purchased $5000 dollars worth ie 100 shares. You should probably be in the conservative or balanced fund, if at all.Do you have 1-2 years of living expenses saved?Do you have that deposit saved?Have you paid off all your debt? You live off passive income, not net worth, and if you live off passive income then you’ll be able to assess automatically whether you have enough based on whether you are satisfied or not with your standard of living. getting through the dividends before you even got to selling down principle. The specific strategic allocations of each investment can be found below: Finance and Economics graduates would be familiar with Modern Portfolio Theory, the basis for the diversified portfolios you see here. When markets go up, it is very easy to rationalize why defensive asset classes are poor quality. It's not entirely surprising due to the diversification and VDHG's small allocation towards fixed income. How are you getting VAS data from 1998 when it's inception date is 2009? How to get worldwide index exposure on the ASX, 11. Why not just invest everything in the US market? Scenario – If I am investing $10k each month buying Option 2 vs. VDHG. What matters to financial independence is not net worth per se but passive income. Its just their other various index funds. Under Option 2: – Brokerage fee for the 12 monthly transactions buying the 3 ETF would be $19.95 x 12 x 3 = $718 – ETF Management fee would be $121.. ($120k x 0.101% MER) – total fee is about $840.
Having Vanguard do this for you becomes a bigger benefit than many realise. Review every 10 years or during big milestones, 30 year old starting to make decent cash, 50 year old approaching retirement etc.
Hey how do i buy the etfs? One I recall quoted 2-3% lower performance, and another around 1%, so if you're a tinkerer that is always trying to find the absolute best investments - by going the DIY route, you might be saving a small amount but paying for it with 1% lower performance is a terrible trade-off.