Sanjee you're amazing mate, please keep making content. I'm a young Australian who is just about to start getting into the share market and your videos are super insightful and incredibly helpful 🙏 You're doing great things mate keep it up!!

Awesome mate - new to this entire thing (shares stocks etc…) & you speak so clear concise & without the bs - much appreciated man, just subscribed 👍🏻

Great video as always Sanjee! Thanks for the info!

@SanjeeSen

3 жыл бұрын

Thanks Nick! Glad it was useful :)

Good analysis mate!

Well explained. I bought CBA for $5.40 when they first listed back in 1994 I think. With drp and one off purchases over the years I've got a return of greater than 7000 percent. No way would you get that sort of return in a savings account.

@SanjeeSen

3 жыл бұрын

Mark you are a legend! Wow what I would have done to have been there in the early days. Great investment and glad to hear it's certainly paid off over the years!

Well i think it all depends on what type of investment system you use that determines which vehicle is better

Hedge your bets and go half/half

Thanks for the vivid illustration, which is really useful and easy to understand the difference between these two. Great work with substantive content. I'm in awe of the amount of knowledge you have grasped in different areas. I learned franking credit just months ago when I was preparing for my CPA exam. Yes, as you said, if the dividends are franked, you can claim Tax Offset from the Tax you worked out based on the marginal rate of your (Taxable Income + franked Dividends received+Capital gains...). May I please know how you bought your Commonwealth Share? Still through Commsec? Thanks.

@SanjeeSen

3 жыл бұрын

Thanks Coco for watching! Yes I buy my shares through CommSec.

Hi Sanjee, How about comparing AUS real estate vs ETFs?

Also you can earn money to by being a passive investor

What is Govt Bond. How it is better than shares. What difference of dividend and Govt Bond returns? How long maturity period? Could tou pls explain

Hi Sanjee, This is a great video - thank you! Good reason there are no dislikes, lol! I have shares with CBA which I bought for $60 and I plan to hold them med-long term. I have Webjet, Syd Airport, Qantas and Telstra to diversify (all in small amounts). I also have come savings in high savings (3%) account with BOQ. To diversify further I am considering ETF's or Government Bonds, however the government bonds side of things has me stumped. Why do some government bonds have a coupon rate of 0.25% for example, and others are 5.5%? I'm also wondering which one to chose really, given it is fairly likely interest rates stay low (which is good for bonds) and plan to keep them medium term (5yrs for example). When I search a government bond in Commsec I can see some are $112 for example (like in your video on bonds), does this mean I'm paying possibly $112 but at end of term getting $100 per bond back? Thank you.

@SanjeeSen

3 жыл бұрын

Hi Daniel, thanks so much! Yes the government bond rates do vary quite a bit. I'm not sure why they do that though. I guess there's a team in the Treasury department that makes a decision on what they should pay and issue it on that. You're right there are some amazing rates in there like the 5% one. Also there are some that are Inflation adjusted (meaning it'll be some rate (X%) above CPI...which makes it more tricky too). Yes the price you'll pay is determined by the market...but at the end of the bond you'll get the original $100 it was issued at. The $100 is also the price at which the interest rates are calculated on (not the price at which you buy it at). A great place to learn a bit more is the ASX course on Bonds www2.asx.com.au/investors/investment-tools-and-resources/online-courses/australian-government-bonds-course

2% interest in commonwealth saving account? Do you have a link for that? I can’t find it . Thanks for your videos

@SanjeeSen

3 жыл бұрын

Hi Leandro! Thanks for watching. You bring up a good point that I didn't clarify in the final version of this video. The reason I used 2% savings rates is because historically savings rates have been sitting around there (like over the past 5 years). It has dropped of dramatically since then though! To confirm you can go to either of these sites: tradingeconomics.com/australia/deposit-interest-rate (and pull up a 5 year trend). Or you can check this finder page where they showed historical rates www.finder.com.au/history-of-savings-account-interest-rates . But to your point - yes CBA doesn't currently have a 2% account :( . However I believe Westpac has a 3% account you can check out here: www.westpac.com.au/personal-banking/bank-accounts/savings-accounts/spend-save-ntb/

What about investing the 10k into VAS or VGS and re-investing your dividends into those?

@kaydens6964

3 жыл бұрын

Vas is basically four banks, just buy those banks yourself imo.

So there is no tax on bank dividends only or on any dividends? How about if you decide to sell your shares at a profit?

@kevinvo6144

3 жыл бұрын

You pay tax on your dividends, even if you reinvest it (based on your tax threshold). However you get franking credits (30%) which will offset some of that tax. So eg. if you're in the 34.5% tax bracket (32.5%+2% medicare), then you'll be paying 4.5% tax on your dividends (assuming 100% franking as in the case of CBA). If you sell your shares at a profit you will again pay tax on that profit (called Capital Gains Tax aka CGT). However if you've held your shares for more than 1 year you'll only be taxed on 50% of the profit. Hope that makes sense!

@SanjeeSen

3 жыл бұрын

Fantastic explanation. Thanks Kevin!

This does not make sense.Shares in 2016 were $60.Now they are $97.

Great video but hey! Nice hair!

@SanjeeSen

3 жыл бұрын

Haha thanks! It's actually my new COVID hairstyle

Id love to spend an arvo with you. Play with my $60000 is in shares. Im bank shares,but id love to play the day game. Any other way of contacting you? Ima newbie.

@SanjeeSen

3 жыл бұрын

Hi Ads - send me a message through Twitter or Instagram.