Best Way to Invest 150k in Your 20s - Need Advice

Kamsta on 30/01/2019 - 09:22

Hi guys,

Quick question for all the investment-savvy Ozbargainers out there. I'm in my mid 20s at the moment and have been able to save a little bit of money. I don't have many expenses and try to put away a little bit in my savings account with each paycheck and it has added up to about 150 k now.

I've moved most to the ING savings maximiser account with a 2.8% pa interest but I feel like there is probably more I could do with it. I don't have too many forseeable expenses in the next 1-2 years, so I could probably put a lot of it into something and leave it there for a little while. Any advise? Where would you recommend?

I initially thought property but this market in Syd and Melb is very volatile at the moment and difficult to read.

Thanks in advance

Financial Investment

Comments

  • Hybroid on 30/01/2019 - 09:24

    Every investment has risks, whether higher risks investing in stocks/shares or relatively lower in property. The alternative is locking it away in fixed term interest accounts bearing in mind inflation over time decreases it's value.

  • [Deactivated] on 30/01/2019 - 09:27
    -2

    the property market is volatile? so a 5-10% drop is volatile?

    • cypher67 on 30/01/2019 - 09:52
      +1

      Volatile - Liable to change rapidly and unpredictably, especially for the worse

      On a $500k property that is up to $50k loss in 1 year with no signs to suggest it is back on the increase. Sounds Volatile to me.

      • GG57 on 30/01/2019 - 09:54
        +1

        I'm not sure it is unpredictable?
        Every commentary I see is that values are falling.

        • cypher67 on 30/01/2019 - 10:47
          +1

          Anyone can predict anything, if they are correct or not is a different story. People are still buying houses, if it was a sure thing they are dropping people would stop.

          • JIMB0 on 30/01/2019 - 12:11

            @cypher67: People could be buying for other reasons. Technology gets cheaper all the time yet people still buy it.

          • HardlyCharly on 30/01/2019 - 13:13

            @cypher67: Yeah maybe they're not rich toffs buying a second investment property but actually need/want somewhere to live? Ever think of that?

            • cypher67 on 30/01/2019 - 13:50

              @HardlyCharly: Wow never crossed my mind thanks, however I would question someones motives if they didn't think of a home as an investment.

              If someone needed/wanted a place to live and they could predict that the price was going to drop, why would they buy it? Even more so why would the banks lend them money on a house they were 'predicting' would drop in value. It's value is what someone is willing to pay for it, which could change daily & given the recent downward trend … which I am happy to call volatile.
              You are more than welcome to your own opinion.

  • CyberMurning on 30/01/2019 - 09:28
    +3

    invest some in ETFs.

    I initially thought property but this market in Syd and Melb is very volatile at the moment and difficult to read.
    "buy at gloom sell at bloom"

  • [Deactivated] on 30/01/2019 - 10:24
    +3

    If you don't own a house yet, get to it. CGT.

    In case you are not initiated, there are two key requirements to being wealthy.

    1. Make money/assets
    2. Minimise tax/liability

    You cannot make any meaningful wealth distinction between yourself and the average unambitious 9-5er if you cannot achieve both.

    Ps. Volatile property market may be volatile for investors. For primary residence, the volatility is greatly offset due to CGT and home loan (vs business loan). Property prices will always (exceptions apply, ie dead cities, ie Detroit) rise again. It is the nature of cash money to devalue against essential assets of finite supply.

    • Artkin on 31/01/2019 - 08:13

      Could be a matter of 'catch a falling knife' in this environment. Sideways movement plus indebtedness.

  • [Deactivated] on 30/01/2019 - 10:27
    +1

    Depending on what your skills, expertise, trade, is , I would consider starting up working for myself.
    Ie. If you have been working few years as plumber for someone else, start up on your own, have people working for you etc.
    Not knowing your profession, hard to say if this would be good idea or not. Also, running business is not for everyone, some people prefer to just always work for someone else, even if it means the lion's share of profits go to someone else, and they just always get the same rate/salary.

    • [Deactivated] on 30/01/2019 - 10:30
      +6

      …prefer to just always work for someone else…

      Solid advise.

      Owning a business is very demanding and often becomes an active investment that ties you down more than a full time job.

      Working for someone else gives you the head space to manage the money as a passive investment, which sounds like what you're after.

  • pifts on 30/01/2019 - 11:02
    +1

    Hey OP, this sounds like a good starting point for you: https://docs.google.com/document/d/1GbH4o-k4D2IxQLZusvA01wQZ…

    Do a lot of research on top of that and think about your personal risk and liquidity preferences

  • [Deactivated] on 30/01/2019 - 11:31
    -1

    Wait for highndry to reply and follow his advice

    • CyberMurning on 30/01/2019 - 11:41

      who is he/she? famous investors?

  • [Deactivated] on 30/01/2019 - 11:43
    +3

    Coke n hookers

  • RandomNinja on 30/01/2019 - 12:12
    +2

    Have you set any financial goals for yourself (including timelines)? Once you know what you're saving for and by when, it will help guide your investment choices.

  • Trying2SaveABuck on 30/01/2019 - 12:19
    +3

    Sign up for selfwealth or CMC share brokering account and buy VAS

    • muppet on 30/01/2019 - 22:19
      +1

      and VGS

  • Wardaddy on 30/01/2019 - 12:53
    +2

    Put in some lowball bids for property - one of them will pay off. Then salary sacrifice as much as you can into super - it's a solid tax effective retirement plan for the long term.

    • [Deactivated] on 30/01/2019 - 14:48
      +3

      OP is in his 20s. Super is way too far away for it to be worth the opportunity costs at this stage. At best, he has to wait 30 years to access those funds. Whatever that super is doing, it better increase eightfold to even be considered a decent return.

      • Wardaddy on 30/01/2019 - 15:54
        +2

        If I'd known then what I know now it is exactly what I would have done.

      • Lancel_Bracken on 31/01/2019 - 07:46

        Given you can (and should) have high exposure to risk assets in your 20s inside super, i don't agree that putting extra into super represents an opportunity cost vs investing outside of super. That money will get the benefit of compounding in a low tax environment, and the instant tax benefits also…

  • HardlyCharly on 30/01/2019 - 13:17
    +2

    Easiest, low risk set/forget, index funds.

  • prisonmike on 30/01/2019 - 14:24
    +4

    New Supra !!

    • [Deactivated] on 30/01/2019 - 14:48

      I've honestly considered it but I don't think I can ever bring myself to be a Supra owner.

  • Geoff-bargain on 01/02/2019 - 06:45
    +1

    Opal Tower - should be some bargains going there

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