Hello everyone,
I have made a series of posts and done some research and I have decided to pursue ETF’s over an Investment Property.
My current situation is
I am trying to ascertain the best course of action.
Should I invest, say $2000 a month into ETF’s alongside a lump sum of say, $30,000 of my savings or continue as usual with my HISA? I don't want to dump my entire savings into an ETF as I expect to travel ($$$)
My HISA is guaranteed to give me 5% returns however I am paying tax on this interest so the total amount is less.
I understand that ETF’s generally give you a higher annual return.
Currently, an ETF seems to be a no-brainer, especially over an IP or HISA for my current scenario.
However, I have read a number of reddit posts that suggest to keep the money into a HISA for short time frames. I don’t understand why? Couldn’t I just keep my money in a ETF. pull it out when needed, lets say in 3 years if my scenario changes? Is it easy to withdraw cash from an ETF?
I have made a series of posts and done some research and I have decided to pursue ETF’s over an Investment Property.
My current situation is
- 24 years of age
- Steady income – 80,000 salary /w 35,000 HECS debt
- No expectation to move out (cultural reasons)
- $50,000 in savings (including $5000 in emergency funds). These savings are currently in a HISA which gives me 5% interest (assuming I satisfy the requirements).
- $850 a month in fixed expenses (Board, phone bills, health, subscriptions)
- ~$1650 a month in other expenses, which varies (fuel, social events, food, clothing, grooming, going out)
- I am expecting this to be an investment over the next 5-7 years. This is because I expect to be married and have kids (29 years old – 31 years old). I expect to purchase a PPOR at this time.
I am trying to ascertain the best course of action.
Should I invest, say $2000 a month into ETF’s alongside a lump sum of say, $30,000 of my savings or continue as usual with my HISA? I don't want to dump my entire savings into an ETF as I expect to travel ($$$)
My HISA is guaranteed to give me 5% returns however I am paying tax on this interest so the total amount is less.
I understand that ETF’s generally give you a higher annual return.
Currently, an ETF seems to be a no-brainer, especially over an IP or HISA for my current scenario.
However, I have read a number of reddit posts that suggest to keep the money into a HISA for short time frames. I don’t understand why? Couldn’t I just keep my money in a ETF. pull it out when needed, lets say in 3 years if my scenario changes? Is it easy to withdraw cash from an ETF?