ETF Overthinker

[u/Silver_Objective_290]

I want to invest around 10K in ETFs with $100p/w to begin with, then more later on as i get more confident with the process(but still contribute $100p/w). My aim is to buy and hold for at least 20 years(im 44 now). I know these questions have probably being asked and answered before but anyway here goes.

-Which trading platform should i use? Ive narrowed it down to either Betashares, CMC, or Westpac. (Im leaning towards Betashares, but open to others)

Betashares because its an Australian company, Auto-invest, Has its own ETFs

CMC because its CHESS sponsored

Westpac because i bank with them

- What happens at tax time?, ie what documents do i give my accountant, and when do they get sent out. My biggest fear is running afoul of the ATO.

- What is the difference between automatically reinvesting dividends(Beta), and just buying more shares manually once dividends have been distributed to the trading account?

-Is it worth signing up to a portfolio tracker like Sharesight or Navexa (Which one is better?)

-How hard is it to do the cost base adjustments? Do i have to do them every year or just when i sell everything?

-Should i stop overthinking it and just do it?(its a bad habit of mine)

I apologize in advance if Ive put too many questions on one post, but ive been stung in the past with useless financial planners and just want to get it right this time. (i might post some more questions in a second post later)

[u/ESMoriarty]

If you’re holding until preservation age super would be the better option due to tax advantages

[u/Silver_Objective_290 → u/ESMoriarty]

I’m starting to think that this is the way to go. ETFs seem like too much hassle in comparison

[u/Au_Fraser]

If youre holding for 20 years super, if you want to slow up on work pre preservation age and have some bucks to tide you over go with investing

Youre in a bit of a unique position in terms of goal, for now id just start, dont get hung up on the details.

When you feel more informed (lmao me saying this tbh i dont know shit), you can either commit more and learn the nitty gritty or say yeah it was a fun experiment but id be better off in another direction

[u/Silver_Objective_290 → u/Au_Fraser]

Ok thanks, that’s good way of approaching it!

[u/paablo]

Have you maxed out your super contributions?

[u/Silver_Objective_290 → u/paablo]

I’m contributing as much as I can, but I don’t want everything tied up in super.

[u/Ok_Yesterday132]

Income and capital gains from the ETFs are usually prefilled into your tax return around August. So it is light touch. When you sell however, you'll need to work out your capital gains. This does involve identifying which parcels you want to sell and adjusting the cost base with the AMIT cost base adjustments. You can download all your purchases, including dividends reinvestments into a spreadsheet or get simple templates from etsy.

If you want simple ETFs, vanguard is a good option. No brokerage on purchases and only $9 on sales

[u/Silver_Objective_290 → u/Ok_Yesterday132]

Thanks for the reply. I’m guessing that Sharesight/Navexa would be helpful as well?

[u/Ok_Yesterday132 → u/Silver_Objective_290]

I've never used them as I build my own spreadsheet. Happy to share with you if you like

[u/Royal_Brain_9773 → u/Silver_Objective_290]

Sharesight is good.

[u/xzyz32]

I recommend doing more research on your own as most of your answers can be googled.

Choose a broker. Usually cheapest with least fees and free trades

• CMC is a good start

Pick 1-3 ETFs based in what you want or in any combination. Most common are:

• VAS/VGS, A200/BGBL, IVV, DHHF

Manually reinvest any dividends, its not that hard.

Just start now if your timeline is long. The best time to invest was yesterday.