Just wondering where to invest $400,000.00 for a 12 month term maybe longer for the highest interest? I would appreciate any information as I have no idea and banks seem to have very low rates, thanks in advance.
Where to invest $400,000?
kim65 on 09/07/2015 - 16:33
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I would put 100K to 200K in seperate high intereste rate online account to enjoy the liquidity (where you can draw money if needed).
and then invest the rest across a few AUD bank stock.
It is better to invest money in bank then making deposit, if you can take short term risk.
AUD banking sector is one of the strongest in the world as our banks our quite conservative and the compeitition is not tense.
invest in my startup!!! lol
probably best to put them into the bond market now as the yield is rising?
You have it wrong way round. As the yield rises (that is, the interest rate on new bond issues goes higher) the price you can sell 2nd hand existing bonds at declines (because they are paying a fixed interest rate that is lower than a new bond).
So investing in bonds when rates are rising will result in you losing some of your capital.
If Bonds are declining, then don't come a knocking
thanks. should open up my text book again!
12 months is a very short investment term for shares. If you need the money in 12 months time instead of something more flexible like 24 or 36, you may be forced to sell some shares while they're down in price.
If all you're looking at is to park the funds somewhere and wait for a better opportunity to arise then an online savings account looks like the best option to me. Beware the advice of 'free' financial advisers. They're only free because they take a cut of your investment.
All of it in RAMS. Just adds 200 a month.
People suggesting equities obviously haven't read your post.
invest in bikies.. you'll be protected for life!!
12 month time-frame keep it in the bank.
Invest in a good mutual fund, especially the ones who invest the funds in overseas stocks. My mutual fund has given me around 14% returns.
Just throwing this out there,
From op's statement, it looked like he/she is interested in term deposit or any cash investment that yield high interest.So in my own opinion, anything that fluctuate and more than 12 months should be ruled out from my feeling.
As we don't know what is op's situation is maybe we shouldn't really suggest to invest anything. But from his/her statement, it looked like saving acct or term deposit.
Op can do his/her own research for best td out there or saving account out there. Then maybe call banks and bargain for higher interest because you have leverage with lots of money.
If op is too lazy to research what to do with his/her money, then op should just pay someone to do the research for him/her. This is not always good for you because adviser/sales could be product sellers or not.
Crowd sourcing is great but it is your money so take good care of it and make an educated decision for it. After all, it is your money and you are the one that needs to understand what you are investing in and what shit you are getting into.
No such thing as high return without risk or have some form work and knowledge put into it.
Just my 2 cents
if you don't know what to do with $400K, how did you get $400k in the first place
Either you inherit, stole or earned it by "mistake"
Um, bought a slightly above average Sydney property any time in the last decade and just sold it?
Hmmm why would you sell it, i rather have the rent money coming in. 400k in sydney? Seems like a small apartment in Penrith.
Getting creative, is there somebody you trust highly with a large mortgage & offset account? You could lend them the money for the offset, they could pay you the difference between a saving account and their mortgage rate. Win/win. And while I don't advocate avoiding tax, it would be a transaction that would be unlikely to be in the ATO's sights, while any income from a savings account would be taxed.
That would be a great idea, but what if then your good trustworthy friend loses his job and cannot repay you? Do you repossess his house, throw him on the street, and sell the house to get your money back as the bank would? With all the good intentions, the unforeseen is always to be considered.
choose a method shares/property.
Study
investAs someone in a similar position previously, if you already haven't purchased proprety I would go for that, even if your still living with parents. Definitely better than paying additional tax on the interest from your savings, unless you got plans in 12 months to use the money otherwise hence the term deposit.
Where does the money come from?
trees
Pimping, thug life
Real Estate still my choice. $400k should get a nice property which you can get some tenants in and earning more than banks, PLUS the LIKELY capital growth of the property itself.
I prefer commercial over residential but each to their own.
A nice property where exactly? $400K isn't a lot of money when it comes to property. Besides that, to buy and sell within 12 months would be a gamble that you would break even let alone make money when you consider the costs involved and you would have to pay CGT on ALL the profit.
Not Australian real estate though.
Buy a castle in Normandy instead.
http://www.news.com.au/finance/real-estate/these-10-french-c…
This is what I would do.
1. Use 100K as deposit to buy an investment property (House) in Brisbane. You can afford to buy a 550K property at 88% LVR (12% deposit + 5% cost).
2. Use another 80 K in SA.
3. Use another 120K in WA.
4. Use 100K into shares (may be option trading)
5. Keep 100K as buffer in an offset account
Brisbane and SA are good investment options. WA is too risky for beginner property investor. Good to point out buffer, buffer is very important.
yeah enough deposit for 5-8 properties in brissy, Logan (maybe too hot now?) or south west of brissy
only if he can service it
80% LVR is what you want. Maxing out LVR is not what you want unless you have 100% job security.
Deleted
You don't… simple as that
With the way the market currently is I'd be VERY risk adverse and I like to live dangerously.
I'd throw the whole lot into the highest interest account there is at a real bank, say ING for example.
Any interest that you 'gain' I'd either compound or throw into some very well researched shares, companies that have good cashflow and are a necessary purchase (the goods they sell) but are undervalued. Keep in mind, I expect the market to keep sinking for a while yet, just wait until we feel the brunt, especially from countries such as China. Which is why it might be best to limit the shares bought (if you do like shares) to companies that have limited overseas exposure (obviously coal mining selling to China right now is not what you want to be buying).
Although you could just lowball the hell out of the real estate market and someone might just be desperate enough to take up your offer. Then rent it out for a good sum right now.
100% into Dogecoin.
Srsly though $399,650 into RAMS/ING/uBank (whichever has best interest at the time), $350 into Dogecoin.
I'd suggest stock as well but you explicitly mentioned 12 months, and the brokerage costs would cut too much.
$350 looks to get you 1,244,842.794138569 - enough to be a dogecoin millionaire.
I didnt think RAMs is a bank though?
Good point. I checked out http://www.rams.com.au/about-rams/ and it seems that RAMS is a part of Westpac now, and hence the Financial Claims Scheme applies.
I believe the term is Dogeillionaire. :)
I would invest in currency, specially USD. The AUD will be likely kept falling down within the next 12 months, so use the money to buy USD, put the USD in a foreign currency bank account to get some interest to maximise the profit.
That's a good bit of gearing. I wonder if you'd have to pay tax on the interest return being an Aussie citizen (if account is in the US). Then again… some of the cash rates from the US suck a massive…
Is there a way to get the foreign bank account without physically going there? I once wanted a ANZ bank account in New Zealand… Australia ANZ said I couldn't open it through them - and ANZ in NZ told me I had to fly to NZ to apply.
OP, did the Nigerian prince promise to give you 400,000? 😅
Buy a unit/house in a sought-after suburb, live there for 12 months maybe also do cosmetics improments, and sell it without having to pay capital gain tax.
Maybe property or shares, banks do have a limit, but they do offer you deals if depositing more than quoted, best to give them a call.
With $400k you should be aiming for $20k return in 1 year, pre-tax.
If it's not your money, then perhaps consider spending it all on travel, concluding in Majorca.hey i would say buy a cheap house, and rent it, you would get the money from the rent which is like at least 5% a year + the increase of value of the property which depenging where it is, could be up to 10%
Where are you? Sydney or Melbourne?
dont get why these people ask for financial help with barely any information provided and then disappear.
Classic sockpuppet account.
from what i have seen in the news for 400k you could almost buy greece!
Invest in a Nigerian Scam
Lol, stupid neggers
crown casino, roulette red or black
shares, take the risk, play with a demo account until youve got the hang of it, start small and only play with your winnings that way if you lose everything, you would have only lost your winnings, its a small start but there is minimal risk involved.. right now you can take advantage of the greek crisis.
or, if you want something more guaranteed, you could start your own business, buy for cheap and sell for your own decided rrp, you need to find something niche.
In a 12 month window?, did you read the question?
12 months: bank or shares.
Under my mattress.
If you were looking for a longer term prospect I am looking for someone to loan me $30,000 for 3 years at 10% pa
I think you can get 3.4% from citibank online saver for your full amount, for 4 months. Then 2.6%
Use the 4 months to find something better.
https://www.citibank.com.au/aus/banking/savings_accounts/cit…Vegas
real estate development if i were you. a friend is working for a developer and most project they're running has 10% plus annual return.
Don't put it in the bank, you will be losing money. You pay money on interest made so put it in shares.
You pay tax on dividends and share price increases even if you don't sell too.
Keyword is franking credits, I believe. Depends which shares though
If you really do have $400k to invest then you should speak to a financial planner rather than asking on an internet forum where people are looking for cheap dishwasher tablets etc.
If the majority believed the property market was going to crash/decline it would already be happening. That doesn't mean it wont happen.
Buy property in Greece. Actually buy the whole country!
invest in shanghai composite index….
Just a heads-up,
This is coming from personal experience.
I came into a large some of money back in 2007, a few hundred K larger than the OP's amount. Here is what happened…
I resigned from my job, I bought some toys, and by toys I mean a brand new PC I with high end parts, a few nice signature guitars and some amps/pedals and software (this is came to a total of under 7k). I bought a ute for about 10k and sold my shitbox. I was making over 1k a week in savings acc interest at the time (rates were much higher than now). I helped my closest family with some left over debt they were owing. Besides the debt help for my Mum and Sisters, I had spent 50k on (profanity) around, I realised perhaps this was the wrong way to go about using this sum of money, and so I decided to put most of it into a property for myself to live. TBH, I bought at the height of the housing peak and so I haven't really gone anywhere in terms of equity, but what it did do is stop me from being able to slowly nibble the money away on living like I was some sort of playboy.
I'm very responsible with money, but I suggest if you are tempted to 'live it up', I would try safeguarding by way of force. If I had my time over again, I would have purchased two properties a bit further away from the CBD, and lived on the rental income, or rented out both properties and lived with one of my sisters.
Just my 2 cents.
cool story bro
Certainly better than your story, bro.
Nope, no it wasn't.
Please explain…
I suggest investing in Google.
Ozbargain, nuff said
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oh, I didnt read the 12 month part, my bad.
Ubank interest account all the way