FIRST TIME INVESTOR
Moving from Micro
Hi there, I am a low income mum of 3 trying to invest for our future. I am currently investing with automated payments fortnightly into micro investments. I’m just wondering at what point do I move over to bigger etfs etc? Would this be a case of selling my micro and using that to invest into bigger etfs? Or is there a way to somehow transfer micro to bigger etfs? Thank you :-)
4 Comments
about 1 year ago
HI Chanel.
Awesome work getting started investing despite a tough situation!
Good question.
Generally it makes sense to move to normal investing into ETFs for example when you’re able to invest say $500-$1000 at a time. Now that might be once every few months or something like that if you aren’t able to save a lot, but that dollar amount would be where it starts to make sense.
Having said that, if you find it easier and more motivating to invest smaller amounts more frequently, then continuing your current approach might be the way to go. We’re likely to do better with the approach we find more motivating and enjoyable to follow.
Hope that helps.
Dave
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Replynick nicolaides
PEARLER
about 1 year ago
Hi Chanel,
And thanks Dave for sharing some thoughts. This second question is something that is quite personal to your situation Chanel and so not something we can give specific guidance on. So to help you consider what might work for you in the future.
You have three main choices:
Keep investing as you are – This may not give you enough choice, but if the ETF options themselves are OK for you, then it can be a fairly cost effective way to invest, even in larger amounts.
Leave your existing portfolio where it is but start investing in a direct shares account – You should consider fees here because the may be a mix of subscription and pay-per-trade fees, which could overlapp. We never want to see people paying more fees than they need to.
Sell your existing portfolio, invest the proceeds and start investing further in a direct shares account – You should consider any tax implications from selling / interrupting compounding, and whether you might save more in fees by migrating to shares vs potentially avoiding capital gains tax. We are not tax advisers and this isn’t tax advice, but if you need assistance with this the ATO forum is helpful (google ATO forum) or chatting to an adviser at the time may be necessary.
Sometimes we can’t give very specific answers, but hopefully this gives you some food for thought on how to consider what will be best for you.
Thanks for being a Pearler!
Nick
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