-Have 20k spare
-Earning pitiful return from a "high interest" internet savings account
-No current loan or offset account
-No outstanding personal debt
What would you do? (Besides throwing wads of 50s into the air & making money angels on the living room floor)
Only problem is I do not know enough about shares to trust myself to personally invest…is 20 grand enough to consider paying someone to do it for me?
Apologies re scant details - this is pretty short term, I intend to have a 100k available by next year, this is just the spare bit that's currently available (complicated story involving an estate, a Court case and a settlement etc).
Thankyou for providing an explanation of your short and longterm financial goals. Based on your information I would recommend that you put 100% of your funds in an online saving account, awaiting your 100k.
(My advice is somewhat tongue in cheek, boardering on absurd as you have given us extremely little information. You could be a 16 year old man bedridden with asthma, or a 70 year old woman who has an extensive property portfolio)
33, FT worker, 100k income, partnered no kids, no assets in my name besides a car.
I plan to use the bulk of the money that's in the pipeline to fund a house deposit next year.
OK. I'd be going for online saving account then. Otherwise your exposing yourself to too much risk over the short term.
Lol US currency .. seems like the worst time to buy
you can park it in my bank account.
*beep *beep
*honk *honk
Risk versus reward.
Maybe BHP shares are cheap?
What about p2p lending?
If you dont know what to buy, and considering the amount. I would go for an index fund. That way you spread the risk around alot of different companies.
You can 'invest' in an expensive car like that other ozbargainer.
Seriously though I've got a similar problem where I have money just sitting in a bank account (albeit a few times more) but I don't want to risk losing anything.
sorry to get a high yield investment car you need at least $80k
Ha. I was only reading that thread earlier, admittedly it's the reason I started this thread. Guy was a total clown.
And then die and wish u spent it
Buy a Car Park, buy a Secure Car Park.
(this isn't Financial Advice, it just isn't). lol
There is money in those things!
Given you need 100K next year, so this is short term….
Unless you are supremely confident in the share market, just leave it at 2.5% interest in a savings account.
A touch higher is possible. Could use the 4 month intro rates and move on.
http://www.infochoice.com.au/banking/savings-account/high-in…
Put it all on Red!
Don't listen to this person, go Black instead.
Green
Stuff black or red, just feed it into Shogun 2 at your local pub.
Some of yous has mentioned P2P lending - anyone who actually does this and happy with their experience?
So far I haven't had one default or even one late payment. Some loans have even paid early. I'm coming onto a year of first hand experience though, which is not long at all.
I usually hate the grammar police, but "yous" makes me cringe the most.
Oh yeah? What about 'brought' in place of 'bought'?
I would've arksed the same question
She's most likely from the western suburbs of sydney
Really look at actual return. An extra 3% or even 20% return on the risk of it not being there next year.
i would be talking to houseing loan providers on what 'deal' they could provide for me now and in future.
interest plus insurance may have a better cost / loss benifit of not haveing the property you may acquire now and rent paid.
other considerations are first home buyers grants that may or not be available after next budget.
after all this keep money in most secure financial institute you can.
"Parking" implies this is an amount of money that you haven't actually worked out what you want to do with yet. In which case, leaving it where it is, i.e. in a bank savings account/term deposit is the answer.
If on the other hand you are looking at where to "invest" this money, this is a much more complex question that simply cannot be answered through forums such as this.
Fair point. Perhaps I should have titled it "best return on 20k for the next 12 months" or similar.
I would suggest that you invest it in a listed investment company like FGG.AX or QVE.AX which will give you a spread of risk, paying a franked dividend and some capital growth.
Avoid the big LICs like ARG and AFI. There investment performance has suffered because they are big and slow to react to market changes.
Rule 1.01 know your timeline.
Listed Investment Company (LIC)
https://www.moneysmart.gov.au/investing/managed-funds/listed…
ARG
AEF
AFI
Saves you having to research companies.
Go to https://simplywall.st and just research a few of those recommended LICs and buy them as normal shares. They pay dividends and likely will outperform a HIS account. JHM is right about ARG and AFI not getting great returns but you should still consider them.
If you know exactly when you will need the money then try a term deposit, if you don't know when you will need it then keep it in a savings account.
IMO…
www.betashares.com.au/products/name/australian-dividend-harv…
A good choice in your personal situation.
Not financial advice, just personal opinion based upon your desires/risk profile.
All the best!
-Earning pitiful return from a "high interest" internet savings account
Yeah this is pretty much everyone in the developed world right now, welcome.
If you want to ensure you still have that 20k at the end of the year, just keep it in savings, inflation is low.
Everyone (including smart money) is searching for higher yields, you need to take more risk and with that short time frame and what seems like little knowledge in investing just don't. It's bad Risk/Reward.
Invest in a small shop
Park it at love and rockets. The ladies will help you with your roi
20k is chump change in this day and age
Thankyou for providing an explanation of your short and longterm financial goals. Based on your information I would recommend that you put 80% of your funds into Australian shares and hold the remaining 20% in US currency.