Australia - where to invest 10K and add per pay.

[theconcierge]

Hi all,

I have been putting $150 per pay (fortnight) away into a high interest savings account (ING) since my son was born. I would like to keep this money invested for 10 plus years at least ( I don't know what we will use it for, maybe schooling, maybe helping with a business, but he will never know about the money until it's time to use it).

Anyway, I have around 10k in the account now and I release that I need it to be earning more than it is currently sitting in a bank. Obviously vanguard (and other index funds) is very popular on here. My question is, are you able to invest a lump sum (10K) plus add to it ($300) each month? or is that not how it works.

I have some other money ($2000) in acorns, which is working well, but I am not sure about putting 10K in there.

The majority of our money is going to paying our homeloan off (4 times the base payment) and I want to keep this 10k totally separate, I don't even include it in any of our calculations.

Can someone give me some starting points?

many thanks guys.
 

[misterhorsey]

Hey concierge

Scroll down this page to the bottom. 

https://www.vanguardinvestments.com.au/retail/ret/investments/product.html#/productType=retail

Vanguard retail managed funds have a minimum $5k starting deposit and no minimum ongoing deposits.  So they would suit your approaching to saving, but you won't know whether or not they suit your investment strategy until you poke around the site and read up on them.  The only disadvantage is the high-ish management fee of 0.90% on the first $50k invested (it gets smaller the more you invest).  But for ease of use, automatic rebalancing, diversification across asset classes as well as geography, it's hard to go past it.

Others may suggest you pay off the homeloan first.  They might need to see some more numbers to determine whether this makes any sense.