Open for your last chance to win $500

AND: I've automated my investing, now what??

AuthorAuthor

Sascha Kelly & Equity Mates
October 23, 2023

Do you want $500?

Here’s your last chance to be rewarded for helping us!
Here’s the deal. We want to grow our Get Started Investing email list. But to do that, we need you to help us. We’ve decided that instead of putting more $$ into Google or Facebook for advertising, it’s way better if we reward our community instead!

How do I enter?
It’s pretty simple. All you need to do is send this email on - to friends, family or colleagues - who you think might enjoy reading it every week. Refer 2 people using your unique link below, & make sure they verify their subscription. That’s literally it - 2 referrals and you’re automatically eligible.

What can I win?
There’s 3 prize packs up for grabs! Each contain:
- $250 voucher from Bill Fairies for your bills
- Either a $200 voucher for Woolworths or Coles
- And a $50 voucher for BWS

Competition closes 11:59pm, Sunday 29th October 2023.

I’ve started DCA’ing… What do I do next?

Last week, we got an email from Maddy, in Berry NSW.
She asked:

Hey Bryce and Ren,
I have a quick question about core and satellite investing, and auto-investing. I currently have an auto-investing system set up for my core portfolio, investing into a few ETFs. I’m curious, do I just keep doing this forever and save up little bits to then invest into different parts of my satellite shares and ETFs? Or is there a point where I eventually say, I’ve got enough of my core, put it on hold, and now I start looking more into the satellite side of things?
Any advice would be great!
Maddy, from Berry in NSW.

Maddy, we loved this question! Well done for getting everything set up, and regularly investing into the market. But you’re not writing to us for a pat on the back, you want our thoughts on what to do next 😂.

Well, when it comes to core and satellite investing, there's a lot to unpack. First and foremost, we believe that your core portfolio, made up of ETFs and index funds, is the workhorse of long-term wealth building. The stock market's historical average return, around 8-10%, combined with the magic of compounding over many years, can generate significant wealth. You don't necessarily need a satellite portfolio to have a fulfilling investment strategy.

Satellite portfolios – can include thematic ETFs, individual stocks, crypto, and more. These investments can be enticing, potentially offering higher returns, but they come with increased risk. The critical thing to remember is that your time horizon isn't infinite with satellites. Thematic investments, for instance, sometimes only play out for a short period of time, and individual stocks can be incredibly volatile.

That’s all a long way of saying, when it comes to balancing your core and satellite investments, it's a personal choice. It’s also essential to be confident in what you're doing. If you've automated your dollar-cost averaging into your core portfolio, and that’s all you’re doing - you’re still on the right path! Don't fall into the trap of comparing yourself to others' Instagram-worthy financial journeys. Stay consistent, be patient, and let your investments do the work over time. It's a marathon, not a sprint.

Bryce and Ren go into more detail in the episode today. If you have a question, don’t shy! Send us an email at [email protected] and it could be you next week.

Property V Investing?

Every Monday, Bryce and Ren get together and compare notes on their investing journey on Equity Mates Investing Podcast. Yesterday, Ren had a rare mea culpa to offer as he misled everyone with an slight inaccuracy, Bryce is curious about the Ozempic effect, and we heard his conversation with his mentor Henry Jennings, who’s back from Europe at long last.

We also had a question from an Equity Mate community member, who’s studying a PhD in Sydney, and needed help convincing his parents that his chosen path of stocks is better than an investment property. He wrote:

I have money saved up from years of working, and I’ve dabbled in buying index ETFs and I quite like it. My parents want me to buy an investment property in Sydney but I don’t want to commit to the long-term mortgage and associated baggage. Essentially, my question is how do I tell my parents that I want to start properly DCA’ing into index ETFs / VDHG instead of buying into the Sydney housing market?
Sam, from Sydney.

Bryce has recently bought a home, and Ren is currently looking, so the guys understand this conundrum very well! Essentially, they decided you need to do the sums, and work out mathematically what’s going to be the best position for you at this stage in your life. Ren also pointed out that if you’re still studying, and want to have the freedom to move and be flexible in the next few years of your life, then Sam is right to be building his wealth through a portfolio of well-diversified ETFs.

What would you tell Sam?

An investment property, or continue to DCA...

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