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..


  • +3

    In same boat, I've been looking for awhile and there isnt a clear answer.

    Fact is markets being artificially propped up by Donald Pump and printers going brrrrr. US basically burned through $1Trillion in a month, no way thats sustainable. ETFs are bound to stock market, subject to the same rules, with COVID no light ahead for awhile. Property here is already sliding and will accelerate its decline with economy tanking, job losses etc…

    Im sticking to cash because I believe worst yet to come IMO Bid players have basically liquidated in March. Id say research now and move money next year after US election and how markets react.

    • +2

      Wish I saw this before starting my ETF portfolio last month.

  • whats wrong with accruing debt? Investment into property would be much safer in the long term compared to other asset classes (i.e., shares).

    • +1

      What if the shares that own property?

  • +1

    Get a good stock broker (don't ask me how and yes, they do exist) and invest in the stock market.

  • +1

    If you have to ask here, stick to indexes.

  • +2

    high yield investment car

    • +4

      Yes, this exactly. Anything Fiat/Chrysler, especially.

      • i would go for like an alfa romeo

  • +3

    Go to reddit #ASX_Bets

  • +1

    Depends on what you want to do with it. And your attitude to risk. You can get a mortgage and invest in property. Or you could buy shares. I started buying us stocks two years back and only got the blue chip tech stocks. Most of them have doubled.

    • Do you have any example of US shares that have doubled in two years

      • BYND, in one year in fact, and that's not considering IPO price (if you consider IPO price which was $25 it's quintupled).

        Others that have doubled (and would have been good if you bought in March at the low point) are:

        • Zoom
        • Tesla
        • AMD

        Tech is probably in a bubble at the moment though.

      • Msft. It has plateaued with the Tiktok

    • Examples of shares please. Do you use local sharebuyer like nabtrade or comsec.

  • +1

    My friend is sitting on 300k and thats what he told me. I might invite him to have a look at responses here :P

  • +1

    Eneloops and sell them off in 100 years' time

  • +4

    Depends on many many things not present in your post. Age, business knowledge, investment knowledge, willingness to learn and work, how long you want to invest for and any likelihood that you may need it back in a short period, how much appetite you have for risk etc etc. For instance my position is not completely dissimilar, I have invested about $200k in shares since March (on top of existing investments). however I was open to the risk of market dropping further and this would not cause me to run in panic and I am only in my 40's and it would not be devasting to my future if I lost it and I have no need for the money in the short term.

  • +1

    Research a lot. Buy 1 penny stock. Easy to keep records and tax info.

    • This amount can easily pump a cheap stock on crap news and as soon as other investors see it, they buy…time your sell and make profit

  • I would use most of the $$ to fund irrigation, electrical projects in some world 3rd town. It's utterly amazing how much you can stretch your money provided you avoid the corruption traps. $120K can literally lift thousands of people and their descendants out of abject poverty

    • provided you avoid the corruption traps

      Decades of sharping their corruption skills to be bettered by a new comer. You sound like The Karate Kid of 3rd world corruption.

  • All in on deep OTM Tesla weekly calls?

    In a week you are either back with a thread on how to invest $1M or how to recover from losing 120k. 🤣

  • +4

    Share it, wealth should belong to all of us.

    Don't be selfish

    • +1


      • User name doesn’t quite suit?

        • You can be poor and not a lefty

  • +3

    I don't what your situation is but I would spend the money on something that makes you happy.

    Our whole lives we are told to save for a rainy day - but why save for a rainy day that may never come?

    Or like we are right now with rainy day after rainy day what if it never gets 'better' again?

    Or invest in Vanguard shares.

  • R/Wallstreetbets

  • +3

    I'd buy a coffee van and keep the rest as a buffer while I establish a morning run.

  • +1

    Invest in S&P500
    leave for 10 years
    Pullout or repeat

  • What are the best/smartest investments now?

    Do you want the best now or in the future? Because generally the best now ain't going the best in the future because everyone has already piled in.

  • +1

    Exchange it for USD.

  • If you’re a ABB user, buy $20k of shares next week when they sell to public

  • Why no one is interested in investing into Qantas or Webjet or airline industries? What about cruises? They will be back to normal in an year or 2 max, right?

    • if you think it'll go back to normal in a year or 2 you can buy now otherwise it's not worth the risk. Also people might be factoring in the fact they had to dip into savings/loss job so they won't be going on holidays to catch up on savings

  • -1

    Put it in bricks and mortar. Not an apartment, a free standing home in a nice new area in Sydney. Maybe North west like Marsden Park or something south west like Gledswood Hills. New areas.

    The housing market in clean newish suburbs in Sydney are about to explode with demand due to everyone working from home (white collar workers anyway). People who previously rented in the inner west no longer need to be that close to the city and will slowly move to larger homes in new areas. You will make >7%p.a on your investment, hard to compete with that sort of return unless you score big on stock market

    • +7

      you sound like a real estate agent

    • +1

      You will make >7%p.a on your investment, hard to compete with that sort of return unless you score big on stock market

      A 7% ROI is pretty easy on a $1000 trading portfolio. That is less than 0.02% per day.

    • +1

      Conversely they could slide due to decreased demand from the immigration taps being turned off. Generally apartment prices are a precursor to this and they're dropping fast

  • +1


    • Can lay down some roots with that investment

      • For sure.. with that sort of money to invest it can only go up

  • +1

    Buy shares in oil companies as they have been smashed recently, you could potentially double your investment in a medium term hold.
    Of course there's downside risk, do your own research.
    Other option is to dollar cost average, buy shares over a period of time.

    • Woodside potentially could raise money via Spp to fund its on hold projects. This will dilute share price in the short term if capital raising happens. Please DYOR as this is just an opinion 🙃

      • I hope OP took my advice

  • Just put it in an ethical bank and go enjoy living your life and not think about it.

  • park it in my a/c and let me know your expected return, i will tell you the expected Risk.

    • This seems too good too be true!!! 🤪

  • +2

    All in on ASX:BRN (In all seriousness please no, it's a great meme though)

  • prob stock market right now…

  • +2

    buy a Tesla model x, high yield investment

  • +1

    Just divide your investment money into 3 equal parts and then invest into NAB, ANZ and Westpac.

    That's what I did.

    • why only banks?

      • well for following reason:

        1. chances of banks going out of business particularly these three are significantly low
        2. solid track record of dividend
        3. currently under valued by at least 10% and if they go back to pre COVID share price then upside is in excess of 50%.

        other sector including ETF will provide dividend but there is no surety that they will recover well or they have long term future similar to banks.

        all ETF has banks under their portfolio so instead of giving fees to someone manage etf and still provide 4% - 8% return i am better off with this banks directly.

        i also have Bendigo with me on top of above three. keeping myself away from CBA as it is over valued at the moment.

        my portfolio is negative at the moment but it will return to surplus within a year once situation changes and also these stocks goes further down then i will accumulate more.

        i am not financial advisor so please do your own research before investing !

        • yeah I have somewhat similar view like you but trying not to be enticed with the historical dividend as banks won't pay close to that for a long time. They probably have found a good excuse to reduce the dividend now!

          I am heavily with NAB but agree with CBA, not seeing this going close to the all time high anytime soon but others banks seem to have some potential.

          Good luck, but I am trying to diversify in other industries too as economic downturn will keep dragging the banks share price down.

          • @IMadeYouReadThis: Diversification is good but stability that comes at attractive price is no match to any other industry or company.

        • +1

          Banks here really exposed now to mortgage default now ie toxic assets.

          • @Bid Sniper: That's what happened in 2008 and many small banks wiped out in america but major bank survived and gave dividend all along.

            • +1

              @SydBoy: They're still toxic assets and worse still to come once job keeper and quarterly financials come in. Lot of businesses still to go under.

              Ok buy in banks, that fine but not now with iceburg ahead. Going to loose money, same with those spruiking property. Bad time to buy

              • @Bid Sniper: It is possible that stock probably goes down further even worst then 26 March 2020…and it will take almost a year or more to recover but it will recover. So as long as you invest in bluechip companies for long term then chances of loss is minimum.

                It is always hard for normal people to work out how low the market will go before it rebound.

                What was the reason government supported jobkeeper or banks gave away repayment for six months? Just to save wider economy and hence government will do everything in their power to save bank including negative interest rate.

        • +1

          Curious if you've actually checked historical performance. 5 year return is something like 0.5% p.a.

      • +3

        Berkshire Hathaway dumped a big share of their bank stocks this year. It’ll take years for banks to recover from this global economic downturn.

        Nobody will miss them if they all go bankrupt.

        • +1

          Australian economy or financial affairs depending upon four big bank unlike europe or usa.

          Bankruptcy by bank means all asset they own will be sold and guess who owns property before you pay off mortgage !! Same about all those business that are on credits from bank !

          Practically if any of the big four bank goes bankrupt then we all will leaving with government handout (dole) !

          • @SydBoy:

            Australian economy or financial affairs depending upon four big bank unlike europe or usa.

            Australia's economy is to small not to be correlated with the EU, the USA or the PRC. The smell comes up our pipes when they take a dump in their backyard.

            asset they own will be sold and guess who owns property before you pay off mortgage !

            Debt portfolios are sold cents on the dollar which doesn't directly affect the borrowers. A $250k mortgage before the sale is $250k after.

            • @whooah1979: Agree debt before and after sell are same for home owners but in order for banks to sold those debt even at a discount rate they need buyer and if everyone is loosing jobs and banks going bankrupt then who will buy those debt ! The only reason bank needs to sell it debt is when people stop making repayment and under such circumstances lender's insurance and banks ability to recover loss comes into effect… So before they try to sell debt at discount rate they will sell assets. Same thing happened in 2008 in US.

              So property market will crash followed small financial institutions but big sharks always survives !

        • Reuters reported Buffett has not given up on the banking industry. Berkshire Hathaway remains invested in Bank of America, including a recent investment of more than $2 billion, giving it a nearly 12 percent stake worth over $27 billion.

          What he really sold was goldman sachs as last time he is the who saved it and may be he is not interested in saving it again !

    • @SydBoy, eventhough CBA is the strongest of the big four?

      • Agree, CBA is strongest out of all four banks but the price is over valued significantly. i see ANZ is better than NAB and followed by Westpac but do YORBI (your own research before investing) !

  • +1

    Buy 160 units of xbox series x and sell them for $1200 each before Christmas. 🤣

  • +1

    Rolex watches, limited shoes and Lego XD

    • +1

      I've bought several Hikibi aged whiskys the moment Suntory announced they're out, and within 5 years later, I sold them at several folds more. Currently they're 1.2k-ish for the 21yo, 2k-ish for the limited edition bottle.
      The resale value of limited edition new Rolexes are 4-5 times greater than their RRP, e.g. the Kermit, the Batman, and the Hulk. I've seen used Kermits go for 22k at auction when the RRP is 13k.
      If you know the resale market, and have buyers in mind, I think this is a great investment.

      • Good luck trying to get any ss rolexs at retail price. Lol

  • Buy platinum and thank me after few years

  • How do you describe yourself?

  • If I had $120K sitting in my bank right now here would be my thought process (I am/was in a similar situation so this is from experience).

    Firstly, I would definitely invest the money into an asset, keeping it in the bank will only destroy your purchasing power.
    There was a central bank meeting in Jackson Hole 2 weeks ago, all the CB's from around the world decided they want to let inflation run hot targeting an 'average' inflation rate of 2%. Average of 2% means let it run up to 3-4% for a few years because last couple have been under 2%.

    Governments from all around the world are borrowing insane amounts of money, the only way they can pay it all back is by letting inflation run hot.

    So basically assets will inflate at a fast rate. This also means that it's a good idea to have investment debt (debt stays the same, while the currency debases).

    That basically points you in the right direction, real estate.

    With 10-20% of capital, you can control an asset worth 80-90% more.
    $100K deposit allows you to buy a $500K property (or $100K with LMI and you can buy up to $1M property) depending on your serviceability.
    If you buy an investment asset, then your serviceability will be quite easy as you will be getting rent + tax benefits.

    The loan will service itself mostly depending on your situation, so you will be able to continue to live your current lifestyle + you will be keeping up with inflation not just with $120k but with $500K-$1M.

    I tried to simplify everything as much as possible to get the point across. Happy to discuss more if anyone is interested :)

    • Its not 2019 anyore…

      • Exactly right, things have changed big time. Rates will be going negative soon, QE is on its way for Australia, the stimulus is yet to come, jobkeeper/seeker was just to stabilise the situation, watch what is announced at the October budget + in the years to come.

        Government backed digital currencies, universal income, debt forgiveness are all coming, the entire monetary system will change. First in US & Europe and then in Australia probably next business cycle. Assets will increase in price exponentially.

    • Rental properties are sitting vacant around here…. Maybe one day it will swing around… Probably in a year or two though.

      • Bidding wars for them in Perth at the moment

    • Give an example of major city where loan can service itself…! Does not exist anymore even after low interest rate as prices in Sydney sky rocketing with auction clearance rate higher than 70%. ! Only real estate agent or mortgage broker thinks it is right time to invest and loan will service from rent !

      • Loans do service themselves in all the capital cities. It depends on your personal situation and how much leverage you have.

        80% LVR loan, with 20% deposit. If you get rent at 3%, that already covers the interest part of a loan + some principal, the depreciation and tax benefits then further lower your taxable income and that covers the principle mostly. If that sounds impossible to you then you need to do more research.

        Current rental yields are all 3% and above in all capital cities in Australia. Current mortgage rates are all under 4% with some even under 2%.

        Speak to an accountant. I am just a pleb on the internet.

    • With 10-20% of capital, you can control an asset worth 80-90% more.

      False sense of control. Until things go wrong and the bank controls you.

      • That's like saying any leverage (credit) you take is a false sense of control.

        If you do your research you will understand why it's silly NOT to use leverage, inflation will destroy your purchasing power.

        In simple terms, how much did $100 buy you 10 years ago? How much does it buy you today?
        Real inflation is approx 30-40% compounded over 10 years, (forget CPI, it doesn't include food, land and other essentials)

        In 10-20 years time, first home buyers will be looking at $1M+ houses in the fringe suburbs. Sounds crazy? Go back in time to any time period in the last 60 years, imagine telling anyone from the 1970's that by the 1990s prices would have gone up 4x. "Impossible!!!"

        They would think you are crazy and how could anyone ever afford anything. Well the truth is prices went up 10x! How? Inflation kills purchasing power.

        1970 median price in Melbourne: $12,800
        1990 median price in Melbourne: $131,000

        So now imagine using leverage (credit) to buy a house back in 1970's (1980's, 1990's, 2000's, 2010's lol anytime you want) and only paying interest only the entire time, the loan would still be $12,800 but the property would now be worth $800,000. Inflation destroys debt.

        Investment debt = good.
        Personal debt = bad.
        Poor investment choices = worse.

        • Until this happens

          Or this

          If you do your research you will understand why it's silly NOT to use leverage, inflation will destroy your purchasing power.

          Problem is when YOU do research but don't know how to interpret it.

          Using your link

          You are drawing a straight line between 1980 and today. But forget to explain the 1980s and 90s were high inflation which contributed a lot to your inflation data. If you look at the graph in your link from 1980 to 2001 $100 turned into $32 which means you lost $68. But from 2001 to 2019 it went from $32 to $20. In first 2 decades you lost $68 and in the second two decades you lost $12.

          In 1980 interest rates were like 15% (inflation at 10%). Right now inflation at say 2% and interest rates on 3%.

          You talk about asset inflation but you also don't talk about salary inflation. It is important to understand we're not earning 1980s money buying 2020s property.

          Don't even need to do complex maths to know if you were paying a mortgage in 1980 with $1k a month at 15% interest rates vs $1k a month at 3% interest rates in 2020 will allow you to afford a more expensive property (nominal not inflation adjusted)

          I expect our economy to go the way of Japan. Zero central bank rate, QE, high property prices, only share market hasn't crashed yet.

          • @netjock: "But from 2001 to 2019 it went from $32 to $20"

            Yes, that is a 62% loss of purchasing power!

            "Zero central bank rate, QE, high property prices"

            Yes thats all correct lol add to that Government debt is about to surge globally!

            Regarding the links you showed, of the person who bought in a mining town during a boom, do you really think they did actual research? They fomo'd hard chasing 100% gains in a year in a town located in the middle of nowhere with 1 main industry driving prices. That is just silly.

            I am not saying everyone go out and get massive credit and you will be rich lol, I am saying if you invest wisely and use debt to your advantage (and of course are able to actually cover the debt rain, hail or shine) then over the long term you will do very well. Up to each person to put in the time and effort to educate themselves, there is no free lunch.

            • @croseks:

              "But from 2001 to 2019 it went from $32 to $20"

              Yes, that is a 62% loss of purchasing power!

              Do me a favour. Get your arithmetic right.

              From 1980 to 2001 $100 turned into $32 which means you lost $68 = 68% loss over 20 years

              But from 2001 to 2019 it went from $32 to $20 = 32 - 20 = 12, 12 of 32 = 37.5% loss over 20 years

              That is also assuming you have spent every cent you have earned. No salary inflation, no asset inflation.

              Inflation is a worry but the actual real problem is people who don't invest in themselves to earn a higher salary to allow them to save. Min wage of say $35k, simple skills uplift to be able to be an office manager at a small firm will get you $45k which you can uplift your super contribution to 15% would mean a lot more comfortable retirement.

              • @netjock: Yes you're right, 37% is correct.

                Are you saying Saving vs Investing?

                Saving is a very slow road trying to keep up with inflation. However saving as much as possible while investing as much as possible that is obviously the ticket here, you cannot manage debt if you don't know how to save first.

                I agree with your comment on investing in your skillset as well.

                • @croseks:

                  Saving is a very slow road trying to keep up with inflation. However saving as much as possible while investing as much as possible that is obviously the ticket here, you cannot manage debt if you don't know how to save first.

                  Saving isn't to keep up with inflation. It is saving so you can invest. If you spend every last centre there is nothing to invest.

                  For most people the simplest rule would be to hit 15% super contributions first and put it into an industry super fund. Pay the tax man less and keeps you from spending it.

                  You know when politicians argue not lifting the super guarantee because it would eat into people's ability to spend you know they are talking crap. If salaries go up by 1% a year on say $40k it is $400.

                  SG at current 9.5% of $40k is $3.5k, 10% on $40.4k is $4k. So really the person gets $100 less over the year but obviously the tax man loses a lot more at 19% tax vs 15% in super.

  • +1

    You Could invest in some ETF funds, you could ask for a financial advisor at your bank, I reckon next year might be a good year to invest in property

  • Spend some time reading up here and then decide:

  • +2

    Step 1: Purchase 60 of these RTX3080 gaming PCs -

    Step 2: ????

    Step 3: Profit

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