I am trying to decide if it's better to invest in vanguard or a high interest savings account? If you have $100k to invest what would you earn more on?
Vanguard or high interest savings account?
ISTJ on 24/08/2016 - 13:25
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Generally speaking you earn very little after inflation is accounted for
especially after tax.
Do you mean the card game Vanguard?
Have a look at this article OP.
If it insists you need to log in to continue reading, try refreshing the page. If it still won't let you in, IMO it is worth registering to read it. It's free, they just send you crap which you can unsubscribe from anyway.http://www.fool.com.au/2015/04/02/how-to-setup-the-perfect-d…
It gives you tips on how to diversity 100k into ETFs. I haven't got that much to play with, but I do have somewhat less split up into just 3 ETF's so far.
As always, get proper advice before doing anything.Depends on your investment time horizon. 5+ years for Vanguard, otherwise high interest.
Sorry yes I meant Vanguard index fund.
I notice that cba currently has three term deposits of 3.20%. Am I likely to do better than 3.20% with vanguard over 3 years?
Also is it worth getting a wholesale account with vanguard? Apparently you can if you have 100k. What are the benefits of this?
Lower management fees.
Need minimum of $500k to pay lower management fees.
You havent indicated which vanguard index fund. Cash? Aussir shares? International shares? International shares hedged? Aust fixed interest. Intentional fixed interest?
All have different risks /returns.
Speak to a trusted adviser.Hi OP have you looked into investing in any AREIT funds ? Looks like they give very good returns as well.
Assuming you mean the index fund then you will probably earn more money using Vanguard. However index funds return roughly the same percentage as the market they track so if the market goes bust so will you (but if it gains then you gain also).
High interest savings return much less however the risk is lower as you will only take a loss if the entity you put the money the money into goes bust or Australia is invaded or whatever. Generally speaking you earn very little after inflation is accounted for compared to index funds that track the stock exchange.