ChickenCoop's Scraps

Where are you and where are you going?
wolf
Posts: 966
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: ChickenCoop's Scraps

Post by wolf »

I am in a similiar position as you ChickenCoop. I also do hold roughly half of my assets in cash. I have invested in bonds though, but I didn't invest in equities in the last few years. My investment target is about 5 years ahead of me. So I've got the problem how to invest. Recently I thought about investing it via "dollar cost averaging" (DCA). Starting end of the year, I could imagine myself investing all my cash within the next 4 to 5 years via DCA. Why DCA? Because I'm risk-averse, I too see the highly leveraged equity market (see Shiller-PE-ratio), and I wanna minimize the downside risk of "loosing" money. Eventually I found that paper in the internet, which discusses the chances of outperformance of DCA vs. lump-sum-investing in regards to PE-ratios.
http://uncledmoney.com/wp-content/uploa ... A-CFPR.pdf
Maybe you could also gain some perspective on that topic, too, with that paper.

ChickenCoop
Posts: 25
Joined: Thu Jun 21, 2018 3:45 pm
Location: Australia

Re: ChickenCoop's Scraps

Post by ChickenCoop »

@Wolf, Thanks for the link, Yeah, That sits pretty well with me. I'll do something like that.

@Bigato, Ive started reading, but Maybe I've been reading the wrong things. I've been reading Ray Dalio's articles on Market cycles. That is what has me aware of where we are in the current long term business cycle. I'm grateful to have a friend that is a long time value investor(retired share analyst). He sends me info and keeps me patient. I also have a Peter Thornhill book that I've started reading.


July 2019
Assets:

Cash-Emerg Fund -$12,582.
Cash-Kids Future fund -$17,517.
Cash-Investing -$80,676.
Super-$380,135(invested in cash)
Shares-$93,917
Inv Property equity-$363k, $194,599 still owing
Home-$0 (as far as FI assets are concerned)

Total-$947,827.
$5027 increase in July.

ChickenCoop
Posts: 25
Joined: Thu Jun 21, 2018 3:45 pm
Location: Australia

Re: ChickenCoop's Scraps

Post by ChickenCoop »

September 2019
Assets:

Cash-Emerg Fund -$14,230
Cash-Kids Future fund -$18,445
Cash-Investing -$2,713
Super-$383,836(invested in cash)
Shares-$95,203
PM's-$86,464
Inv Property equity-$364k, $193,642 still owing
Home-$0 (as far as FI assets are concerned)

Total-$964,891
$8532 / Month increase since July.

Solar PV is starting to pay dividends, now over $1000 in credit with retailer. I'm keen to see how it goes over the sunny months.
I fitted a Second hand wood heater this winter and have been burning the free fire wood. Winter gas bill has dropped by 75%. Only using Gas for cooking and hot water now. I'm looking forward to getting the solar hot water system finished so I can get the gas disconnected.
Chooks have started laying again now that the weather is improving. Still riding the bike to work and getting a few Dollars for the side hustle.
Not to much else to report other than having reduced my cash savings a bit by buying some Pm's. Im looking forward to feeling comfortable investing into some income producing assets in the nearish future!

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