Advice needed for appropriate investment app (and bonus questions regarding super) from 2+ YoE

[bondo]

Hey guys! Need your insights and experience on trading platforms!

Current Platform, eToro. It's pretty easy and friendly to use for a first-time investor like myself. But the ~2.5% exchange rate fee into USD is something I'm trying to avoid

So far my alternatives that I've researched are:

- CommSec (I'm a Commbank customer)

- Stake ($3 flat fee per trade sounds nice)

- Vanguard (I've read that there's no trade fees involved for Vanguard-managed S&P500)

On a different topic, I've heard Super Funds could also be invested. I've recently checked my QSuper account and noticed it primarily incurs account fees and management fees. However, the only credits are the mandatory super contributions from my employer. How do I "invest" them, if I could?

 

[cosmicdust]

@bondo On the super question - your super is already invested and earning returns. You may not see interest or dividends credited, but you own "units" (like shares) that increase (or decrease) in value with the underlying investment.

Look at which investment option your super is in online and switch to another of your fund's options if you prefer. If you have not already made an active choice, you're likely in a "balanced" option which can be up to 30% bonds and cash. For younger people, it's generally recommended to move to a high growth or all shares option to maximise long term returns, recognising that there will be more volatility but you have plenty of time to ride it out.

Don't make the mistake of going 100% Australian shares - we are a very small portion of the total universe of shares.

 

[samz1992]

@cosmicdust Just to add to this the swaaaky koala has just posted on another sub comparing the Super indexed options

https://www.reddit.com/r/fiaustralia/comments/19c11bg

 

[bondo]

@samz1992 Thank you for the link. I appreciate any materials that I can study from. Big thanks!

 

[bondo]

@cosmicdust Thank you for that. I’ll study more about super at a later date. Don’t think I have time for that yet, seems slightly more complex than exploring my investment options

 

[cosmicdust]

@bondo Investing your super is not more complicated than investing money outside super. Take the time to log on, review the options available and switch to high growth or a mix of Aus and international shares. Only a few clicks.

The short summary of why putting more money in super is smart is that it is a low tax environment. You can reduce income tax by putting money in super and claiming a tax deduction. Downside is you can't get your money out until age 60 at the earliest.

 

[bondo]

@cosmicdust Just made some changes to my preference on my QSuper account. Thank you for the advice

At the moment I don’t like the idea of putting more money into super due to the age limitations of withdrawal. But I think the first home saving scheme (I know they’re different) is something I would put a cut of my salary into

 

[samz1992]

@bondo Have a read of https://passiveinvestingaustralia.com/online-trading-platforms-comparison/ I'm not sure when it was updated last so double check everything up it seems to recommend using IBKR for US domiciled trades

Like the other guy said, unless you know what you're doing try and do an indexted investment in Super and add bonds as you get closer to retirement/to suit your risk tolerance

 

[bondo]

@samz1992 I’ve heard IBKR from a different finance advisor. I’ll have a look into it if it fits my current needs regarding usability and trade fees

Yes, I’ll put a hold on my super for now

 

[samz1992]

@bondo Why would you "put a hold on my super for now"?

You should sort your Super before any investments outside of Super

 

[bondo]

@samz1992 Yes, thank you for the advice. Did that last night when I saw the comment by yours. Cheers

 

[immanent_escha]

@bondo Have a read through some articles on my website: https://lazykoalainvesting.com/

 

[bondo]

@immanent_escha I will. Thank you!