Ive finally rejigged my portfolio to indexing

AsxBroker · 28-06-2008, 02:02 PM

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Quote:

Originally Posted by dreads

Great thread, I'm thinking of going down the DFA route myself. It's too bad they have such a high minimum investment, St George have an LVR of 75% on some of the DFA funds but I'd be nervous about a $750k margin loan with the volatility around at the moment. Just because someone is offering the maximum amount doesn't mean you have to take it.

I just have a question about wraps - if I get a fee for service broker to set one up for me is it easy to add to the managed funds in it? FFS or not doesn't really matter, you can negotiate the costs with the individual adviser, if they are not negotiable PM me. Yes it is easy to add managed funds in it Ideally I'd like to BPay to it each week or two, is that something that can be done with a wrap? Yes, you can make adhoc payments when you choose

I wouldn't want to have to get the financial planner involved every time I made an additional investment. I assume you could set up a regular investment plan with the same amount coming out each month but I'd prefer the flexibility of being able to add to it myself. Yes, best of both worlds
Thanks.

No worries,

Dan

PS Speak to an FPA registered Financial Planner before making an investment decision.

dreads · 29-06-2008, 09:34 AM

Thanks Dan. That's good news about wraps.

Regarding the 750k, I meant I would need to borrow 750k if I was to reach DFA's minimum $1m investment when going direct - although I read most of their PDS and they can still reject you even if you have the $1m minimum. Plus it is $1m per investment option, so you can't diversify fully.

I was just looking for a way of avoiding using a wrap, but I guess I should look at the cloud's silver lining with the investment options, tax reporting, etc.

AsxBroker · 29-06-2008, 05:36 PM

Hi Dreads,

I get it now

Most wraps are cost effective from upwards of $100,000 and have discounts which kick in as your balance gets larger.

Depending on which wrap you use, you do have the flexibility of accessing other wholesale funds (for less than the usual wholesale mandate of $1m, saying that, I know a few fundies who let "wholesale" investors have more than $50k), shares, term deposits and cash accounts as well as the reporting benefits.

Cheers,

Dan