I'm 20 and I'm from Australia, have about $8000 saved up for my mortgage fund, hoping to get a hefty sum for my downpayment when I plan to buy a house in the future.
The $8000~ savings came from my 6 months of work, and now I have invested them all into a US-investment ETF (IVV).
What my plan is to repeat this process every 6 months (earn money, put them all into a different ETF) in the hope that I'll have a healthy diversified portfolio after a few years.
Then after a few years when the time that I'm going to buy a house nears, I'll put the future savings into a high-interest savings account, while keeping the ETFs where they are.
The reason for my plan is this :
- Every 6 months so I can earn a good amount and buy an ETF in one trade - less brokerage fees;
- I chose ETFs because they don't require as much monitoring as stocks do;
- And because they are generally less volatile than stocks
Before this, my other option was just to keep all my money in a high-interest savings account to go for zero risk but I figured I'm young and can go with a little amount of risk.
What can you advise me to do to improve/change my plans? Are there any flaws that you can see? Any possible improvements?