Financial planner Neil White talks about his first investment and what he'd do with $20,000 to invest

Neil White is director of Australian Financial Planning Network and a representative of Consultum Financial Advisers.
What would you do with $20,000?
Put it in three or four specialist Australian share funds - two growth and two value funds. The funds I would look at would be AMP Equity Fund, Challenger Orion Australian Share Fund, Perennial Value Share Trust and Perpetual Industrial Fund.
I would also look at using it for an investment property or some other tax-effective investment.
What was your first investment?
In 1980 I purchased my first home, in Ascot Vale [in Melbourne] - it was not considered an attractive area back then but it ended up being a fantastic investment.
What's your investment philosophy?
Never try to shoot the lights out. Be patient. The best investments are usually boring. Buy boring - boring usually works. Also, don't be afraid to borrow. You have to borrow to build. It's also important to gather experts around you and legitimately minimise your tax.
What are your current investments?
I have a two-bedroom investment property, a number of managed funds, a range of tax-effective investments, direct shares and superannuation. It is very similar to what we typically recommend to clients. Which brings me to another tip: if you are dealing with a financial planner, ask him or her what they invest in as this will give you insight into what they may be advising for you.
What's your best call?
I have done really well in property and I 've been very successful in my managed funds. My current home would be hard to beat as a best investment. I boughtit in 1998 and it has doubled in value.
Worst call?
I bought a block of land at Ocean Grove [near Geelong] in 1982 for $6000 and sold it five years later for the same price, then watched as the market skyrocketed. That was a big lesson for me. My lack of patience and lack of cash flow at the time led to a very valuable lesson.
How much property do you own?
My home and an investment property.
Do you have a mortgage? If so, are you accelerating payments?
Yes, I have a small mortgage and I am accelerating payments. Debt can be a great motivator. A lot of people don't do anything after they have paid off the mortgage. I think you should pay off the mortgage as soon as you can but utilise the cash flow for further investment. Instead, people usually increase their expenditure once they have paid off the mortgage.
Put it in three or four specialist Australian share funds - two growth and two value funds. The funds I would look at would be AMP Equity Fund, Challenger Orion Australian Share Fund, Perennial Value Share Trust and Perpetual Industrial Fund. I would also look at using it for an investment property or some other tax-effective investment.
What was your first investment?
In 1980 I purchased my first home, in Ascot Vale [in Melbourne] - it was not considered an attractive area back then but it ended up being a fantastic investment.
What's your investment philosophy?
Never try to shoot the lights out. Be patient. The best investments are usually boring. Buy boring - boring usually works. Also, don't be afraid to borrow. You have to borrow to build. It's also important to gather experts around you and legitimately minimise your tax.
What are your current investments?
I have a two-bedroom investment property, a number of managed funds, a range of tax-effective investments, direct shares and superannuation. It is very similar to what we typically recommend to clients. Which brings me to another tip: if you are dealing with a financial planner, ask him or her what they invest in as this will give you insight into what they may be advising for you.
What's your best call?
I have done really well in property and I 've been very successful in my managed funds. My current home would be hard to beat as a best investment. I boughtit in 1998 and it has doubled in value.
Worst call?
I bought a block of land at Ocean Grove [near Geelong] in 1982 for $6000 and sold it five years later for the same price, then watched as the market skyrocketed. That was a big lesson for me. My lack of patience and lack of cash flow at the time led to a very valuable lesson.
How much property do you own?
My home and an investment property.
Do you have a mortgage? If so, are you accelerating payments?
Yes, I have a small mortgage and I am accelerating payments. Debt can be a great motivator. A lot of people don't do anything after they have paid off the mortgage. I think you should pay off the mortgage as soon as you can but utilise the cash flow for further investment. Instead, people usually increase their expenditure once they have paid off the mortgage.
When do you plan on retiring?
Probably never! Really, I am the poster boy for my generation (aged 51, baby boomer). I will probably start to work fewer hours but remain in the game. I don't want to leave something I love if health and circumstances permit me to continue.
How's your super looking?
Good. My investments are good and if I put it all together it's fairly significant. I also have this business.
What's your No. 1 financial tip?
Find an expert to help you. And it's important not to confuse information with expertise, because they are very different. Expertise is not just academic; it's having a practical understanding of how things work. By all means do it yourself but get the foundations laid down by an expert. The best test is for your readers to ask and answer the following question: "Do I have clearly written goals?" If the answer is yes, congratulations - you are the equivalent of 3 per cent of Harvard University graduates. People these days go to the internet and think they have all the information they need - but true expertise comes from practical experience over a number of years.
Source: The Age, Melbourne Australia