Starting an ETF portfolio

Well with Prime you'll only pay $20 brokerage (which is the cheapest you'll get for $5000). Commsec will charge you $30 unless you open an special account with them.

Plus with Prime you get a high interest account as well (RBA cash rate) compared to the low rate earned on the Commsec one.

Good points.
I guess I have to invest through a broker anyway, and if Macquarie has cheaper fees then it wold make sense.
I currently have my money in a Westpac account, which has a decent interest rate if left untouched. But I'm not sure how good their brokerage service is.

Cheers.

I'm such a procrastinator.

I'm not sure how to go about this. I don't have alot of money to invest, so I'm not sure how I should enter the market.
I know it's probably smart to plan my portfolio and invest into different ETF's for diversity and market exposure. But I'm not sure what areas to include in a portfolio, and how to allocate my funds. Then I have to find the right ETF for each area.

Since I only have limited funds, I'm not sure if I should spread myself out and get my portfolio set up initially (which would cost more in brokerage). Or if I should just stick with one or two funds and invest a larger amount, then worry about diversifying later.

I need to take action!

That's always the hardest step - but the most important. You need to do something.

Start small - give something a go, make sure you pay attention to how it all works and learn from your experience.

Just remember that an index tracking ETF like STW invests across Australia's top 200 companies - that's a pretty broad base and arguably provides good diversification in itself.

Something you may want to consider beyond that is further diversification into foreign markets or specialisation into hot sectors - but that can always come later.

I second Sim's recommendation - you need to start somewhere!

Once you have invested some money (even if it's a small amount), you'll find that you take much more interest and are naturally drawn to learning more about investing.

Don't stress yourself about about diversifying in to every possible area to begin with - if you start with something like STW, you've got a good base to build on.

I have heard both STW and IOO mentioned quite alot, so I was thinking of checking out these two funds first.

Thanks guys. I'm thinking I should just open an account with macquarie prime and get started there.

Alright, time to do something.

I'm going to apply for a Macquarie Prime/Cash account. I'll put my savings in there to earn higher interest for the time being.
Then I will invest in STW and/or IOO...

Can someone pat me on the back and tell me I'm doing the right thing?

Unless of course I'm making a big mistake, in which case I would appreciate a smack across the head and a kick in the right direction.


Wish me luck!

I have a few questions which came up in the application process.

What is a CFD account? There is the option for me to open this account aswell as a macquarie prime and cash account. I don't know if this would be of any benefit to me?

What's the difference here?

I don't understand what this is.

Is this in reference to any shares you may already own? I have no other share investments, so this won't apply for me will it?


Lastly:

Quote:

Business Purpose Declaration I/We declare that the credit to be provided to me/us under the Macquarie Prime Facility and Cash Account, is to be applied wholly or predominantly for business or investment purposes (or for both purposes). IMPORTANT:You should not click onto the "I ACCEPT" button below unless this credit is wholly or predominantly for business or investment purposes. By clicking onto the "I ACCEPT" button below you may lose your protection under the Consumer Credit Code

What the?

First of all, can I recommend you read the MQ Prime Product Disclosure Statement. It's a lengthy document, but it's all a good read! It will answer your questions, and perhaps freak you out a bit, but since you are putting money in, you need to do it.

Don't open the CFD account. All you need is MQ Prime Shares and Cash.

Loss limiter demands that every share transaction you place has a predetermined Stop Loss. The standard account lets you place Stop Losses as you choose. Since you are buying to hold, I suggest a standard account - you can put the SL or GSL in yourself.
(I expect that the Loss Limiter account is for frequent traders, who insist on a SL on every trade, and don't wish to inadvertently put through an unprotected trade).

Get the lowest level, maybe $50k. This will have no effect on you. You are not planning to trade on margin, and you don't need any such limits.

Correct.
If you owned shares through another broker ('broker sponsored' with a 'HIN') then you could transfer them into MQ Prime (very simple process, costs nothing). If you owned shares from a float (eg CBA or Telstra) then they might still be 'Issuer sponsored' with a 'SRN' - you could transfer these into MQ Prime as well.


The consumer credit code does not apply if you hold the shares for investment purposes (which I assume you are!) It means that you have read and understood any applicable PDS, accepted the risks associated with investing, and taken the plunge. Nobody will come to your rescue if the investment turns sour.

You can buy gold on the ASX by buying GOLD.