Hi all,
I have 10k saved, what should I do with it? Currently it is in a saving account but its not a good rate. I was looking at the 3.5% interest rates, but thats not very much return.
So what would someone do with 10k?
Now I do have a mortgage but I do not want to put it towards that, I want this money to grow….
or should I just take it to the casino and put it all on black?
What else is there to do with it?
eneloops
*Blackjack and hookers
This is the way
…better than wasting it!
One of the greatest quote of all-time from English football great, George Best:
“I spent a lot of money on booze, birds, and fast cars. The rest I just squandered.”
Agreed. And if any left over you should just squander it.
Save it for a rainy day.
Yes, I want to save it for a rainy day, but I feel it could be earning money. So far my thoughts are open a 3.6% interest rate account.
Hey at leasts yours is better than mine. Mines only 0.13% per month and I have double your savings. per month though.
Ditch them
Or UBANK if you do not fit the criteria for BoQ
it's been raining a lot recently.
Do Hookers even work on rainy days?
If you make it rain they'll work any day.
throw it all on ZIP!
could turn it into a nice $100 in no time.
DW8 and do wine reviews if it goes tits up
Depends how quickly you want to pull your cash out.
I am happy to let it sit for 12 months or so, id rather the flexibility to pull it out after 3/6months but would be open to ideas.
If you are serious about letting out grow then you're talking years.
If you have some risk appetite then shares, ie tesla or just a s&p500 etf
Otherwise just put it in offset as its the equivalent of the same savings rate working for you without the tax issues of earning interest.
I agree with most of w0mbat's statement, but don't buy tesla shares FFS … yes it is down but it was overvalued
The only sensible answer to that requirement is to place it in mortgage offset and when you've determined what to do with it you go from there.
Donate it to charity and get a tax deduction
How much back on 10k?
About 3-4K depending on your tax rate
donate 10k, get what 3-4k back so you lose nearly 6-7k
why would anyone do that just to get a tax deduction
get 5k worth of Powerball tickets for the 160m. dont throw 10k on black lad :D
Ok, so 5k on black and 5k worth of powerball tickets?
5 on red
Start at 1k on red build up
Big TV, good sound bar and subwoofer, and all the latest vidya consoles.
Already got that stuff mate, this is just savings money to make grow.
You could buy shares. Apple and Amazon shares may dip in the near future, but in the long term they will probably go up.
Why negged
@capslock janitor: Individual tech shares are a risky buy - they're already massively overinflated because nobody wants to miss out on the fast increases that have happened in the past; have a look at their PS values for a quick indicator of this
Cryptoooo, your kids either going to go ivy league or youtube university…
You know a scheme has gone as far as it can go when your grandmother shows you her bitcoins she bought with an app on her phone. There's no more rubes to pump up the value.
This is why I didn't buy BTC at 5k last big crypto slump in 2019.
I thought 25k BTC might be the all-time peak, and quantum computing or people realising crypto's applications were limited might end the rollercoaster there.
Turns out the average crypto investor doesn't understand any of that, so I lost a chance to 8x my money last year.
Now I'm trying to decide if I want to bet on stupidity this time…
Seconded…. crypto. Buckle up!
YouTube university? Is that the one Mr. Beast went to?
nah I think he makes virtual extracurricular courses for preschool kids.
As you said, savings rates aren't that great and you have to pay tax on that anyway, it won't even keep up with inflation.
Mortgage / offset account is a guaranteed, tax free win.
With rates rising and markets declining, you'd have a hard time beating just paying it into the mortgage / offset account, unless you want to head over to asx_bets and try your luck.
+1
Mortgage offset is tax free. Whereas savings will be taxed.
Very hard to beat mortgage offset impact on reduction in interest paid for the same little risk taken
Was it wrong of us to pay off the mortgage? 🥺🥺
with interest rates @ 2% maybe, with them @ 5% no.
Paying off mortgage has the same financial benefit as putting the money in offset. You may even have the same benefit as putting it into an offset account if you have free redraw facility.
The potential upside of putting in putting money into an offset vs paying off mortgage is more flexibility. Offset money is much easier to access.
So definitely not wrong to pay off your mortgage 😊
No harm
@darkchoc: Also when it is in an offset account you can get it back and claim the interest on the higher amount should you rent it out. If you pay it off and redraw it you cannot claim interest on the redraw amount if you rent it out.
@darkchoc: Offset money is your 'your money',
whereas
Redraw money is 'their money'
(which they allow you to take from, but technically counts as very "mini loans" )
@darkchoc: Not true when it comes time to get another property. I found this out the hard way. The best approach is to pay minimum payments on the mortgage and all your extra payments into the offset. This will give you the most flexibility and tax benefit in the future.
@bejahi: Yep - offset gives most flexibility especially if converting residential property to investment property in the future to have higher deductible debt.
My response was to @capslock janitor who stated they paid off their mortgage.
Context is key
Crown or Star Casino (depending on where you are) can take your 10k for free.
All you have to do is show up to one of their casinos.
i feel like the way compound interest works throwing it on your mortgage will save you heaps in the long run, probably more than any investment
your feelings are wrong
Give it to me pls. Money me now.
Seems legit
he makes a good argument.
3.5% interest rates
Try living off 1.1% for the last 5 years.
It's more than many people are getting back on their investment properties atm.
Share market is pretty bearish atm.
It will be bearish for the next few years… Good time to build up a portfolio for the long run.
Teach me what folio
What about Charlie's Boy in the fifth at Randwick?
Last race he came last in the 7th but 1st in the 8th. He's a sure thing I reckon.
A nice little earner, mark my words.
I was looking at the 3.5% interest rates, but thats not very much return.
Well, what sort of return are you expecting? (keeping in mind the basic relationship between risk and return).
3.5% ain’t that bad when it’s risk free and this climate.
Leave it in your mortgage offset until you know what to do with it. Should give better than 3.5%
This
this seconded…. you can redraw from your mortgage in most cases and the interest you save is more than the interest you earn
Plus, you don't pay tax on the interest you pay. You do pay tax on the interest you earn.
What is the interest rate on your mortgage? If it's greater than 3.5*0.675=2.36 (assuming you're on 32.5% marginal tax rate) then you are better off leaving it in your mortgage than in a savings account.
ING savings maximiser 4.05%
BOQ 4.10%
save Netball Australia.
Might as well burn the money lol
Nah - they'll just complain that you drive a petrol car…
Or complain that you're a male
Thats a lot of powerball tickets…
Offset account. You pay down your mortgage asap when you have one, you don’t invest that money elsewhere.
So my current interest rate with ANZ doesn't allow for offset - when you get an offset account the interest rate is even higher.
Maybe refinance (there's often bonuses for doing so, which could be worth more than the penalty for leaving ANZ). You might be able to find a better interest rate + have an offset account.
Mine doesn't either, but there's redraw facility (acts similarly to offset yet you just add the money directly to the mortgage account), can take money out at any time, it's shown as available balance
Check if you have unlimited redraw option
Time o find a better bank and most likely a better rate whilst your at it. Any bank that doesnt provide a offset standard isnt worth being with. You're flushing money down the drain just there.
weird flex bro… :D
Having $10k is a flex?
Yes. a lot of people don't bother saving that much. They just pay rent, and spend the rest.
Some ppl don't even have any to save
@capslock janitor: Some people refuse to work, and then complain about not having much money, while hospitality places will take on anyone at the moment.
convert them into usd.
hell no have you seen what the aussie dollar is worth lately?
umm i think that was his point
Most home loans have a redraw facility…
Best way is to put it towards your home loan.
It will earn more money that a savings account…
Wrong you don't earn more money by putting into your mortgage. You just pay less interest.
Is like saying I'm going to take less showers to make more money. No, taking less showers just reduces your energy bill.
depends on how you look at it. offset is tax free "money saved" which has the same effect to your net income. 'saving vs making money' is mere semantics. if you "make money" on term deposit at 3%pa, this is equivalent to 2.1% after tax assuming 30% tax paid. given your offset is likely 4-5% against mortgage at the moment you'd have to earn 8%+ in yields in other investment to be better off. hard to do in current environment
Hookers and coke will be the only response you'll get here.