CoffeeSnob, here's a (bit of a long) story - at my first ASX...

CoffeeSnob, here's a (bit of a long) story - at my first ASX Investor Hour in 2007 - I felt REALLY intimidated. I thought "Wow - all these more senior retirees here (must be really rich), big fund managers there etc.". I later learned that it wasn't actually quite like that...they all "don't know either", which is why they're there - to learn !

My first foray was into "the Big Australian" - which has gone well...so far ! :) I only discovered LICs after reading Ashley Ormond's book "$1 Million for Life" from the library.

I liked it so much I bought my own copy and even gave another as a gift !

Would I have done it differently or chosen a LIC ? No, because I figured "what's the worst that can happen ? - I lose $1,000, and I'm not a trader, I'm there for the long term and the stock I've chosen has been around a bit".

If you make a mistake, use it and learn from it - but it's cheaper and easier to learn from those more senior than you who have made them before and seen it before (hence I hang out at the AIA and ASA meetings).

Re: cash floating around - if you do what everyone else does, you will get the same results as them. But how many people do you know who entertain this 'herd mentality', that are 'really rich' ? They can barely afford to survive on the meagre pension or their paycheque. Look at those who crystallised out in 2008 and went to cash, then the subsequent returns (3% ?) vs the ASX (>30% ?). Those who withstood the pain (and asked for more, buying into it) are sitting pretty with some great bargains.

I believe things will get even better, but it won't be plain sailing just yet.

While your peers blow all their money (and some more) on the latest gadgets, cars, etc. and wake up five years later with little or nothing tangible, at the same time, you will be well on the way to being financially free - and that feeling is gold.

That's why I cannot understand some people who have, but are wasting great opportunities right now in the highly paid tradies, sporting and resources games - to set themselves and their families up for life. Instead, wasting their money on expensive toys, but hey - their money, their call ! (Pharoah's dream about seven fat cows and seven thin cows)

It will hurt at first. It hurts me a lot, everytime when I go without nice holidays and beautiful cars, to put money into shares, ETFs and LICs - but I know it's for the better. Then, I can buy the holidays and cars from the income - NOT the capital !