On Monday, as the S&P/ASX 200 (ASX: XJO) plunged 6.5% following the Trump & friends tariffs announcements, behind-the-scenes, my $100,000 “bold” investment was about to be deployed.
Last weekend, you might remember, I wrote to the 50,000 Rask newsletter readers to say I was deploying a fresh $100,000 into Rask Invest’s Martian strategy.
(Most people thought I was nuts.)
But here’s the rub…
It was a new account that I was funding…
Since I already had my personal Rask Invest account (invested in Jupiter), I was now deploying $100,000 for our bucket company (more on this below), into a brand-new Rask Invest portfolio.
(If that sounds confusing, just think: you can have multiple ‘portfolios’ or ‘accounts’ within one Rask Invest ‘profile’. For example, from one profile you could have a portfolio for you, your partner, kids, a trust, SMSF, etc. – all in one place with tax and performance reporting.)
Because of our strict identity and anti-money laundering rules, I was forced to wait a couple of days while the new account was checked, approved, and the money was cleared.
SO…
My $100,000 was sitting in limbo while the ASX 200 was “crashing” and “burning”, according to some journalists.
As the market fell, my $100k of ‘dry powder’ was itching to be deployed into the market.
The Rask Invest Martian account for Raskles Money Pty Ltd, the name of our bucket company, was primed. It was invested this morning!
Just as the market was snapping back!
@rask.invest Replying to @~ billy ~ soooooo… funny story. This week I invested $100,000 in one lump sum into our Rask Invest platform. But there was a twist… #investing #asx Psst. I don’t usually invest $100k in one go. It was part of our house refinance (“equity redraw”), which is kind of like debt recycling – except I prefer this strategy. All information in this video is strictly general in nature. It is not personal financial advice as it does not take into account your needs, goals or objectives. So don’t act on it before speaking with your financial planner. Owen Raszkiewicz can be verified on asic.gov.au. He is the ultimate holder of AFSL 563907 and you can read Rask’s Financial Services Guide at www.rask.com.au/fsg we will not DM you with crypto, stock ideas or trading. Nothing good starts with a WhatsApp or Signal group. Investing can be risky and result in permanent capital loss.
What is a bucket company?
Okay, a quick note. ‘What’s a bucket company?’
A bucket company is just like any normal legal company – such as Commonwealth Bank of Australia Ltd (ASX: CBA) – except it doesn’t ‘do anything’. It’s just a company, which is setup to receive money (e.g. from another business, family trust, etc.). That’s where the ‘bucket’ bit comes into it.
But once the money is ‘inside’ the company, it can be invested. Just like almost any other bank account or investing account, your bucket company can invest too.
(You’re probably wondering, “why do you use a bucket company, Owen?” I can explain this in detail via the free Rask Community – just ask me. But in short, it has serious tax benefits and legal/risk-off benefits for me and my family. Like most multiple-time business owners or founders, it’s critical to think carefully not just about what you buy (shares, ETFs, etc.) about where your money is held (his or hers, Super or personal), how it is invested (growth, income, bit of both), the tax you’ll pay (individual, Super rates, franking credits) and so on.
And invest, we did!
What did I invest in?
My money has been invested into all of the ETFs within my Rask Invest Martian account. Broadly, it’s 70% growth, 30% defensive – straight out of the box.
It includes things like the Vanguard Australian Shares Index ETF (ASX: VAS), which tracks the ASX 300 (i.e. largest Australian shares). It also includes iShares S&P 500 ETF (ASX: IVV), which invests in the 500 biggest US companies – it rose 4% today.
For diversification, Martian also holds some Australian bonds (ASX: IAF), global bonds (ASX: VBND), high interest cash (ASX: AAA) and a splash of dividend focused / franking credit generation via the Vanguard High Yield Australian Shares ETF (ASX: VHY).
Buy, hold or sell
Is now the time to buy? You betcha.
Will the stock market go up tomorrow? No idea.
Will the stock market go up this year? No idea.
Will it go up every year? Doubt it.
How many years does the stock market fall? Statistically, one in every five years.
Am I confident this is still a great long-term investment? Absolutely!
What else can you tell me?
After doing this thing called investing for over 10 years in the public spotlight, and speaking with hundreds of Australia’s (and the world’s) best investors via some of the largest podcasts in Australia, I know for certain that no-one can predict what happens in the stock market from one day, or year, to the next.
My timing was just lucky – I was going to buy anyway.
And as Warren Buffett says, “in the short term, stocks are risky. In the long term, they’re risky not to own.”
Buy regularly.
Keep holding. That’s the hard part.
And get professional support if you can’t stand the thought of investing while massive uncertainty, like Trump, is everywhere. We can help you invest.
Either way, your future self needs you to invest.
May as well get some professional help to do it. For a reasonable fee…
Pssst. You want to know something really cool? Over 15% of Rask’s investors added MORE money this week.
Psssst. You want to know something else pretty darn great? We’ve had a near record of new investor account openings! Join now.
