How Would You Invest 120k?

How would you INVEST 120K in cash with 0 debt?

Would you buy property? Invest in the stock market?
Buy a business/franchise? If so, what business would you get into?
What are the best/smartest investments now?
How would you make your money, work for you?

Would love to hear some genuine feedback on this..


  • +26

    Transfer it to me, I will let you know in a year time with the results :)

    • +26


    • No but a diversified share portfolio

      • Deworsify

  • DiVeRsIfY

  • +13

    Pretty broad range of options there. Ask yourself a couple questions:
    - How much work do I want to personally put in?
    - Am I comfortable losing some, most or all of my investment?
    - How long am I willing to wait to see a return?

    Also remember more risk might mean more reward but it can equally mean you end up with a big bucket of nothing.

  • Have you genuinely got $120K or just kicking tyres here?

    • +65

      There's actually a few of us that do and really don't know what to do with it so will be watching replies here as have done on other posts. Generally it's mostly people thinking they're funny/witty but there's some good suggestions too.

      However, not brave enough to actually start a business (also cannot due to visa) and not bothered/don't understand enough about the ASX or whatever share investing that always gets posted. So it stays in bank account depreciating…

      There's got to be a better way…

      • +1

        Generally it's mostly people thinking they're funny/witty…

        You get stupid responses to these because people usually have a plan when they first start saving. Or someone who's suddenly come across the money (inheritance, etc) can go to get some professional advice. (And if they don't already have a plan, then the wife might make one up on the spot for them…. lol)

        If someone's stupid (i'm talking stupid here, not ballsy - I'm only calling it ballsy if you have considered and accepted the risks) enough to put the money on black or red just because someone suggested it, then that money wouldn't have lasted very long elsewhere anyway.

        How does one expect others to provide advice while providing such little info about their situation?
        Who really listens to anyone on the internet anyway? It's not $5…..

      • +25

        Keeping your money in a diversified index fund (VDHG for example) is a no brainer for money you don't need in the next 5-7 years.

        • -23

          This page suggests there's a 2.5% increase over 1 year with a negative YTD if I haven't read that incorrectly. I'm not sure that's sufficient increase vs potential risk to consider.

          What platform do you use to invest?

          • +61

            @Hybroid: I wonder what kind of external event could have caused a negative YTD return?

            • +4

              @ilikeradiohead: I don't, but I do wonder where the market will head when lockdowns and 3rd waves continue, we see the end of 2020 with no cure or accination, jobseeker is reduced to previous levels, jobkeeper ends, mortgage and eviction moratorium end, the Australian hospitality and retail sectors don't get the Christmas blitz they're used to. Did I miss anything?

              Perhaps I did, yes that vanguard fund is global, but I don't see the rest of the world doing much better for the foreseeable future.

              Happy to be educated (eg if everyone is losing then nobody is losing). I don't really trust the stock market. I'm more a mattress kinda guy.

              • +4

                @ozbjunkie: As an above poster mentioned, VDHG is an option if you don’t need the money for at least 5-7 years. So I don’t know why you’d focus on what might happen in the next 6-12 months?

                • +1

                  @bawdygeorge: I'm just as interested in the next 5-7 years but I think trying to understand the next 12 months is a good first step in that endeavour.

                  What was it until recovery from the GFC? 3 years in the US and 6 years in AU? With the GFC being a financial rather than physical issue I'd imagine it would be quicker to correct.

                  I hope for the best. But I don't subscribe to the notion that investing in stocks now would be a good idea for the next 12 months… Maybe DCA in… But who knows.

                  • +7

                    @ozbjunkie: Around 4 years for both US and AU markets. Focusing on the crashes is misleading though. As long as you're investing regularly, you'll be buying throughout those 4 years and you'd come out of it with a very good return.

                    Here's a good article on what would happen if you had the worst luck and invested at the worst possible time over and over again:


                    • +5

                      @Autonomic: Yes have read, and realise my argument boils down to "time the market" which is absurd(ish).

                      Cheers for the link.

              • @ozbjunkie: I agree. I don’t know much about the market but I do know that pre-Covid we were headed for a correction. That doesn’t seem to have happened and everything seems artificially expensive. I’ve had a bit in a fund that did about 30% last year and it’s done virtually nothing this year.
                I was looking at a beach front unit but with all the borders closed, it’s be hard to rent to holiday makers and the body Corp is so high it’s like a mortgage repayment in itself.
                Mattress seems like a good option atm.

                • +1

                  @LXE3: I was also surprised at the quick recovery from the initial drop in markets as covid took hold. No real change in fundamentals, so why the recovery?

                  I think it was a combination of low interest rates, a halving of the minimum pension draw down regulations, and lots of new "dumb" money entering the market from people stuck at home.

                  Regarding the mattress, I might be misunderstanding something I read one time, but it seemed convincing to me - "you spend a third of your life in bed, it makes sense to put some serious cash into your mattress".

              • @ozbjunkie: Zzz atelier no doubt

                • @Jackson: Ozmattress grandmaster back when they were all the rage on whirlpool.

                  • @ozbjunkie: Wow, people were dumping 2k for a mattress back then sight unseen? I wonder why they busted when they seemed so popular?

                    • @Jackson: With a money back guarantee, anyone with half a brain was doing it.

                      Probs went out of business because they weren't making enough margin, and their swap and refund processes were too forgiving.

                      What you sleeping on champ?

            • @ilikeradiohead: Lol I wonder how many other people wouldn't be able to put the two and two together. Probably a lot, financial savviness is quite rare surprisingly.

          • +1

            @Hybroid: Personally, I use SelfWealth to purchase ETFs.

          • @Hybroid: VDBA or even VDCO may be a better match your risk appetite.

          • @Hybroid: If your investing for the long term VDHG should return about 8% a year with a few ups and downs

            This is the equivalent wholesale fund and its returned over 9% per year for the last 10 years.


        • Any recommendation for a short-term (1-2 yrs)? 5-7 years is a pretty long timeline and doesn't work if someone has plans to buy a property and are currently in process of saving for the same, for example.

          • @virhlpool: Do your own research etc, usual disclaimers.

            I strongly feel the travel sector is due for growth over the next year or two. Flight Centre and WebJet are down 60-70% from their February prices. Once restrictions are lifted slowly, prices should creep up slowly.

            • +7

              @soan papdi: Assuming they manage to stay afloat that long. At the moment they must be burning through cash just trying to stay solvent. They have a lot of wages and rents to pay in a sector which is pretty much non-existent right now.

              • @macrocephalic: Entirely possible they will go tits up. I'm long on FLT, just waiting for gains now

              • +2

                @macrocephalic: FC did a capital raising as the pandemic hit, they have enough cash to burn until end of next year. They also closed 40% of their retail outlets and have performend extensive cost cutting just like everyone else in the industry. FC's problem stems way before COVID. Like many other brick and mortar top dogs in an industry, they stood and watched as digital players ate their market share and their reactive move into digital is too little too late. Therefore whilst I agree that FC are not a good buy, it is more to do with poor management rather than a pandemic bringing them down. If they were heavier in digitial, they would have been able to hibernate a lot more of the business and stem the cash bleed. Travel is still selling, largely domestic, but an OTA is going to be sitting a lot prettier than a business with a retail presence for the very reasons you stated.

              • @macrocephalic: Flight Centre getting that sweet job keeper. Wage subsidy gold

      • +3

        you can buy an index ETF that pay around 4-5% dividend but with covid-19 maybe that down to 2-3% but it will go back up when business resume and earning resume.

        I just got my kids to buy 3 ETFs Themes, Future Robotic and AI, Tech Stock and Cyber security and General yielding index like A200
        They all doing pretty good despite the crashed money keep rolling in and every 5-10K they save up it goes to those 3 themes year in year out

      • -1

        Yes, but you dont know that, for all we know, he could be asking out of a social experiment to see what sort of replies he gets…but never reply at all to any of the comments….like most dumb questions asked here that may look like the OP is trolling….

        From how I read Baysew's comment, it looks like his had enough internet for the day or week or even ozbargain….so should probably take a rest….

        • +1

          I like how the OP hasn't replied. heh

      • Investing in shares really isn't that hard actually. It's actually pretty important for people to invest because that is how you grow your money over time and make your money work for you (what do people think super is?). The longer you leave it the less time you have for it to compound, so the only person you end up hurting is 65 year old you who could have had an extra $500,000 or more for example, but doesn't because they didn't start investing 7 years ago.

        I think most of the time people are just scared because sHaReS aRe GaMbLinG and ProPeRtY DouBleS eVerY sEveN yEarS, usually said by people who think property investing is a surefire way to get rich and don't realise how hard it is to maintain a property until after they've bought, and that no you don't automatically get $500 in your pocket each week once you by an IP.

        • +2

          ProPeRtY DouBleS eVerY sEveN yEarS,

          2x in 7 is pretty crap.

      • Buy GOLD & SILVER if not physical then shares in mining firms, why it will be in multiple year of bull run. Ray Dalio already in it, also Warren Buffet.

        Gold make ATH $USD 2075, it is going down to retest the lower level. If it monthly level closes above $USD 1827 then there is a high possibility it will continue its bull runs. Some even goes as far as Uranium, Palladium. The ratio is at your discretion.

        Want more infor? dig it in, there is plenty decent site/channel on the net. I can give you some on request.

        Not finance advice.

        • XAU reached an ATH of USD1920 in Sep 2011. It then took a 45% dump all the way down to USD1046 in 4 yrs. The same thing happened in 1980 with an ATH of USD850 and a 65% dump in 2.5 years.

          OP would be entering in an ATH position and with a good chance that history will rhyme.

          • @whooah1979: The global economy vastly different this time around ….

            • @frewer: The financial market doesn't care about the economy.

              The majority of retail money will always FOMO when they see green and do the opposite when they see red.

        • Update: Gold & Silver break support, going to test lower support level.
          Not finance advice.

          • @frewer: The USD is going up. All markets will start to bleed next week.

            • @whooah1979: NQ, SPX, QQQ, has been bleeding for days now. Now Powell speaks it bleed more. Short the ponzi

    • why does this matter?

  • +12

    Sportsbet, bet365, pointsbet, neds

    • Download the app :)

    • I doubled a pittance with PBH shares.

      • +1

        dayummm… tendies from march low

        • +1

          This guy WSB’s

    • +4

      I always love when they say "gamble responsibly" at the end.

    • +2

      20 leg multi…

      • +2

        19 checks and 1 red. Story of my life.

  • +34

    Spend the first $1000 on professional financial advice, and dont seek financial recommendations from a forum full of strangers giving differentiating opinions away for free.

    • +26

      HEY thats no fun!

      • +1

        Second opinions are good too, no? :P

    • +67

      Professional financial advice = here buy my products that I get commission on. I paid $1500 for such advice and their advice was take out a margin loan of $100k and put it in a managed fund (one of theirs). I asked them how would I go about making money with an economy headed into the toilet - they had no response other than "you gotta look at the long term".

      This was 3 months before the GFC hit. Best advice I never took. If they can't advise you based on what cycle the market is in and trot out the usual "look at the long term", "how much risk your prepared to take" lines. It's more fun to educate yourself and maybe build your own theories and try them out virtually to see how they perform over time.

      • +3

        This was 3 months before the GFC hit. Best advice I never took

        and look where you could've been had you actually followed that advice?

        The thesis of investing, as i have found so far, is to not bet on alpha, but remain as highly diversified as possible and invest the entire market. Market risk has empirical evidence supporting the theory of positive expectations over the long term. There is volatility in the short term, but that's why there is always the caveat that money needed soon should not be invested in the markets.

        If you had invested, during 2008 in a well diversified, global fund (VDHG is one such, but not the only one), you would've gotten around ~7% returns per annum, even if you take into account the recent fall (and rebound). That is pretty good for a completely passive investment.

        • +3

          If they followed that advice they would have been screwed for many years.

          Lets play it out 100k of debt in to equities and lost about 50% in the drop.
          (probably more as this sounds like some shitty advice and probably would have been a high risk fund).

          They then would have been paying interest on the whole 100k which would have been about 8%PA at the time on a margin loan.

          Given the LVR after the drop its unlikely they could have refinanced for a better rate.

          Its more than likely they would have received a margin call and had to probably come up with ~30k dollars pretty quickly probably on a credit card at 25%PA or by selling a lot of shares quickly before they could recover.

          Would have been significantly better off DCA in over the last 10 years without the margin.

      • Professional financial advice - here buy my products that I get commission on

        Yep -
        Plenty like that..
        Plenty not like that…

        Legally now they have to tell you about their commissions so you can decide.

      • Absolutely agree, the financial planners I have seen (three of them over the years) have been complete wastes of money, fee gouging and terrible advice. If I followed their advice I would be out of house and home.

    • +2

      How do you find an independent professional adviser?

      • +2

        Check out the Profession of Independent Financial Advisors. You'll never know if they're any good at providing advice but at least they are technically not affiliated with any product.

    • a cigarette lighter and a youtube channel getting popular doing silly things is more fun patreon will pay you being a clown

    • +1

      How else are you going to hit the front page on a popular deal site?

  • +2

    Bitcoin and altcoins.

    • +2

      Pump it

    • +1

      Buy a few YFIs

      • Few months back, you could have bought a hundred 😄

        • It was sub-100 a few months back. You could've bought more than a thousand and been set for life

    • Do you personally have these, or know much about them?
      I don't have 100k spare like poster but a few grand i wanted to invest in, and been thinking about it.
      Pros cons, any thoughts or insights would be great :)

      • +3

        a few grand i wanted to invest in

        Stay away from it! You are welcome!

        • What if it was more than a few G still no good? lol

          Or any other suggestions or do i need a shitload of cash to invest!?

      • Markets come in cycles. This cycle has just started and should continue to end of the money printing.

        Researching the different assets is the first thing people must do. Then get some skin in the game by spending no more than 1% to 3% of the portfolio on a single asset. Start accumulating more when those assets start to grow in value keeping the 3% rule.

        A more experienced investor may also decide to actively trade the assets instead of just holding them. This is a good way to make extra gains in a short period of time.

        There are plenty of websites that can explain this better than me.

      • Yep, more than a few thousand.

      • +2

        The only way crypto can go up is if there is an actual use for it or through people's perception that it's actually something that's valuable.

        Whoever created Bitcoin for example (not known, Satoshi Nakomoto is a pseudonym and could actually be a group of people) got in at the ground floor. People who knew about Bitcoin in 2009 or whatever and obtained it very likely spread the word about it to pump up the price and it went up over the past decade, these people probably have millions of Bitcoins. Thanks to people buying in to Bitcoin and believing it could be useful for something (it's more Blockchain that is useful, not Bitcoin itself) its price has skyrocketed. Those early adopters will become very rich and when they sell the wealth of people who bought Bitcoin when it was $3000, $5000, $10,000 etc. will be transferred to them.

        That's how people get rich through crypto, by scamming others and making them believe the crypto will actually be valuable in the future then hoping they buy it and tell their friends about it.

        As Warren Buffett said "No one wants to get rich slow" even though getting rich slow is very possible even if you don't have a huge salary.

        • Great input an read thank-you.

        • You cannot have a blockchain without a currency to give it value. Blockchain without Bitcoin is just a database. People need to be incentivized to run their computers 24/7, and bitcoin is that mechanism that keeps it all running.

        • these people probably have millions of Bitcoins.

          The biggest wallet only holds 227.5k BTC.

          There are 17k wallets with >93BTC which is what it takes to be millionaire.

  • +7

    Go to King's Court and feel like a king

    • +1

      I voted +ve because I think OP should feel like a King too.
      (Kings Court is just a court full of Kings, isn't it? 🙌)

    • King's Court sounds like a place in a fairytale.
      Hopefully the fairytale has a happy ending.

      • Always when it rains and you get to choose whether it rains or not

    • after the cheap Tuesday Deal that leaves them with $119892.5

  • +12

    The answer to this question depends on so many factors, like time frame, and personal financial goals.

    As I currently live in Sydney - a city I would not buy property in - I would invest all of that cash in a diversified share portfolio, towards my goal of financial independence.

    Edit: Then I would forget about it for ten-fifteen years.

    • +4

      Then I would forget about it for ten-fifteen years.

      Easier said than done.

    • +11

      This is correct - there are so many answers to the question.

      I know a couple who recently came into a 7 figure sum of money - they are in their 70's, whats best for them? Probably to buy a beach house as they really don't need any more money in their life - it would be a great place for their family to come together - happiness is much more important to them than simply gaining more wealth.

      If I was 18-25 i'd go with sw00p's suggestion and get a diversified share portfolio - it'll eventually go up quite substantially.. but its just a matter of when, as it may take yearrrrs to recover.

      If I was 26-35 and wanting children in my early to mid 30's then i'd hold off and look at buying a property in 6-9 months time.

      If I had a property, substantial share holdings, or were 26-35 and didnt want a family in the near future then I would be looking at starting my own business/becoming a franchisee.

      But there are so many variables to your question…….

      • +2

        Current living condition (rent, mortgage or parent or whatever)
        Relationship status?
        Dependents ?
        That's why you need a professional financial advice.

  • -1

    Black or Red

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