Keeping it simple when investing
National Features
January 24, 2011 12:00AM
MATT Baxby, the managing director of Virgin Money Australia and father of two daughters and twin boys, prefers the safety of investing in cash.
What was your first investment and how did it go?
When I was 11, I bought an old bike so I could do a paper round each morning. I was paid about $3 an hour so it was a long payback.What is your favourite type of investment and why?
Equity markets remain turbulent so I prefer investing in cash at the moment.
What is the best investment advice you have received?
My grandfather's sound advice was to always keep it simple don't invest in something you don't understand.
How do you approach investment risk?
I think about the worst possible thing that can happen and go from there.
Where do you get your information about investing?
I like to know what I'm buying into, so I start my own research on the net and go from there.
What has been your best-performing investment?
I bought an old Queenslander when I first left university getting on to the property ladder was daunting at the time but I'm glad I did.
And the worst?
I bought a painting by an Australian artist, Robert Dickerson. I knew nothing about art and I think I paid way over the odds. Nice picture but a bad investment.
How would you invest $25,000 if you were given it tomorrow?
I'd deposit the bulk of it into an online savings account and the rest in a managed fund that gives some domestic and international equities exposure.
How do you feel about investing overseas?
I was fortunate enough to live overseas for seven years with Virgin and have retained some investments in Britain. Key is understanding the market and being aware of the risks such as fluctuating currencies.
Do you make extra repayments off your mortgage?
We try our best but four kids under four means there's not a lot left at the end of the month.
How well do you treat your credit card?
I commute from Brisbane to Sydney with Virgin Blue each week and so I'm a bit of a points junkie. If used the right way, credit cards are a great way to accelerate your rewards points accumulation.
How do you feel about life and disability insurance?
We recently doubled our family with twin boys. That was my trigger for taking out life insurance. I wanted some peace of mind that my family would be protected if I wasn't here.
What's the most extravagant purchase you have made?
I bought a new Scott road bike the lightest bike on the market apparently. For the second year I'm joining the Tour de Kids, a cycling event from Adelaide to Melbourne that raises money for the Starlight Foundation.
