WHAT IF I STARTED WITH $20,000?

Money Magazine Australia - - COVER STORY -

At this start­ing point the trans­ac­tion costs are still rel­e­vant and the in­vest­ment op­tions are lim­ited. How­ever, I think this is enough to di­ver­sify the orig­i­nal rec­om­men­da­tion to in­clude $10,000 of Aus­tralian share ex­po­sure. I would not ex­pect this to in­crease the over­all re­turn, de­spite the sig­nif­i­cant boost from frank­ing cred­its. But I would ex­pect it to re­duce risks.

Along sim­i­lar lines to my $5000 rec­om­men­da­tion, I would sug­gest an ac­tive and pas­sive op­tion depend­ing on your cir­cum­stances. For my ac­tive ex­po­sure, I would rec­om­mend the listed in­vest­ment com­pany Cen­tury Aus­tralia (ASX: CYA). Wil­son As­set Man­age­ment has re­cently taken con­trol of in­vest­ment man­age­ment – we have a very high re­gard for chief in­vest­ment of­fi­cer Chris Stott and di­rec­tor Ge­off Wil­son. For my pas­sive rec­om­men­da­tion, I would go with the Van­guard Aus­tralian Shares In­dex ETF (VAS), which tracks the S&P/ASX 300 in­dex.

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