Not eligible for youth savings accounts, as I have crossed that age :(
Not wanting to invest in shares or high-risk investments as I had a bad experience of losing in this investment.
Investment time is not decided yet. Probably 6 months to a year. Please mention the institution name and their rough present interest rate.
This is my very first entry in OzBargain, so please be kind and courteous in your posts :)
Thank you in advance!
AMP Savings account 1.25% (if morals and ethics aren't high on the agenda) - https://www.ozbargain.com.au/node/607560
86400 is one of the better neobanks with 1.20% interest https://www.ozbargain.com.au/node/635194
Else ING is also pretty good (although you need to make a certain number of withdrawals per month).
Or yolo it all into an ETF if that's your jam.
Can you please briefly explain ETF? The best way to avoid risks is investing via a broker or financial adviser? How much interest rate would be reasonable to expect from ETF? Apologize, if my financial language is incorrect.
ETF's generally follow a select industry/the share market's broad performance with generally reliable dividend and appreciation returns.
Volatility is lower than choosing standard stocks so returns are not as pronounced.
I go through ANZ share trading to buy mine, but any sharemarket trading company will allow you to buy into them (they're listed on the share market just as normal stocks are and you can buy and sell when needed.
An ETF is also what I would recommend - it is the best current combination of safety and reasonable gains over time. There's no guarantee it won't decrease in the short term but I would still recommend you drop the 40k there and if it goes down just continue to hold for a longer term. You only solidify those losses if for some reason you need the money in 6 months to a year
Etf just follow the market, you can lose a ton of your investment if you sold during the stock market dip.
1 year way too short a period to know what is gonna happen.
@Stopback: Agreed - so don't sell during the stock market dip. We don't know their personal circumstances so our advice can't be tailored to that - if they need the money to be available or quite liquid in 6-12 months then they can make that assessment themselves, but in that case there's no good investment
@Stopback: ^ that. I was about to recommend ETF, but then saw "6 month to a year". You'll need more than that for ETF.
Low risk = low return. Just like houses.
Low risk = invest in me! (;
I'll take it off your hands! Lol…
Really depends what you class as risk/high risk?
ASX top 50 fund could be a good.
Noting we will have a new #1 shortly I believe… (no, doesn't have much to do with the above reply.)
ADA
Buy graphics cards and mine on them then when Bitcoin is $200K at the end of the year sell the GPUs for double the price and the coins which you mined from em
Savings accounts offer pitiful rates at the moment, I would rethink on investing in a low risk short term option. A return of 10% is not unreasonable which would be considerably more for your money.
Need to know investment timeframe to answer. Index based ETF is good if your timeframe is long enough.
Timeframe is 6 months to a year. Many thanks!
That's a pretty short timeframe. If you want to make sure you have the $40k (and then some) in that timeframe you don't really have many options. A high interest (read: extremely low interest) savings account is your best option.
You will want it to be over 12 months to avoid high capital gains tax
so….a diversified ETF will, historically, give you the most return. However, on any given day the ETF might be higher or lower and if you absolutely have to sell on a particular day and cannot change the date, you might be selling at a loss
Sounds like you are risk averse and are more interested in preserving capital than making the highest return. In which case, this spreadsheet has all of the accounts
https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--e…
make sure you read all the conditions
Do you mean ETF not EFT in the poll options?
ETF, my bad :p, sorry. Tried to edit it, but for some reason, it is not updating. Hopefully, it will in some time.
If the investment fell to $30000, would you have to withdraw it (sell your investments?) at the end of 6 months or a year, or could you wait longer for the value to increase again?
If you must have the money in full in 6 or 12 months, an ETF is not a suitable choice (nor are other stock market investments or anything to do with crypto coins!).
This is where I feel that that ETF might not suit a person like me. 1. I would be watching the investments every day if it increases or decreases
2. If it went down to 30k, it would really freak me out :( 3. I might need the money in 6 to 12 months. Thank you very much for your advice.
$40k in a bank is going backwards.
Agree, but I guess it all depends on what the money will be used for. If he wants to buy a house in 12 Months and use this money as deposit, there isn’t any other suitable options for short term.
And to be fair, what would you pay to have access to an additional$40k for your investments for a year?
You can borrow to buy a house at 2% so it is a bit rich to say we should get paid more than that to lend our money unless there is a substantial risk.
$40k in a bank is going backwards.
By the end of 12 months buying power reduced to $39,400??
1 year - bank
Too risky in other investments.
Put aside 1k in another investment.
Personally I'd put it into qantas shares. Govt won't let it fail, but then again I dont really know much about much
Offset account
+1, unfortunately, I don't have a home loan yet :(
Find an online savings account with your bank of choice.
A few have been mentioned above.
This is the only sensible answer for any investment with a time horizon of less than one year … 100x more so if you have risk aversion from past losses.
/thread
Spaceship?
lol…
30k in term deposit and 10k in a high growth ETF (IVV, NDQ, VDHG).
This sounds good.
AUD > TAUD > earn 8.88% APY in TAUD or 11.21% APY in CEL for 1 year.
It's low risk, better than the 0.000000001% from banks, and higher than 3.8% inflation.
Look on Ozb for deals.
$40k into a high interest savings account. After tax the return will be around $6 a week which you can invest into a lotto ticket and a scratch card. No risk of losing capital and the potential to become a multi millionaire.
Sure, give me the cash and I will give you back 102% of the value in 6 months.
Raiz
ASX_bets
ETF (& Spaceship, etc) is shares, and I wouldn’t be doing that for a 6 month investment.
See if your bank has any honeymoon bonus rates (ie a 3 month or so boosted interest rate) or, if you can be bothered, stick it in UBank, AMP, etc at around 1-1.5%. Personally, for 6 months on $40k, I’d just leave it in my regular bank, in one of their higher interest paying accounts. You’ll be lucky if it earns a coffee/week.
Battery & EV mineral mining stocks.
MASSIVE RETURNS!
You will receive NOTHING by placing in a fix term account.
Convert to Gold/ Silver, etc. No risk… can only go up.
Gold is -15% 1Y.
It's the next worst investment that people can make.
https://twitter.com/WuBlockchain/status/1424567154716803074?…
Diversified ETF or managed fund.
What do you define as 'high risk'?
With diversified funds you can pick investments that are fairly conservative
High risks as in shares, plus500, etc. Have lost funds in super too which was in a default probably "balanced" investment due to part of it being invested in shares. This was a long time back when there was a crash in the share market. My super when from roughly 11k to 7k. And I had no idea of it until I logged in. I would have thought that it was safely invested in super. Have also seen close family members lose lots on plus500. I feel it is more like gambling.
I am thinking of this long-term, but meanwhile getting my present income good enough for the loan and also for the payments, in case there are times that rent might not be an income.
When my ME Bank term deposits matured earlier this year, I was looking for safe return on my money. I considered buying government bonds via CommSec. Then, my sister's financial advisor (who is also a family friend) suggested Latrobe Financial (debentures) as a secure alternative to term deposits. I was hesitant at first, but now have the bulk of my money invested @ 4.35% for 12 months - interest payments are monthly. The app & web log in procedure are very basic. However, Latrobe's staff have been very helpful when I've had need to call.
https://www.latrobefinancial.com.au/investments/investment-s…
I also have some money in a ME Bank online saver which has 1.1% interest when 4 PayWave purchases per month are made from the linked account (independent of deposits)
https://www.mebank.com.au/lps/osa/high-online-savings-accoun…
Thank you for your post. Any reason why you have chosen Latrobe Debentures over Commsee government bonds? I have also heard of Commsee government bonds that they are pretty good, but this was 10 years ago. Would like to know your thoughts on this.
I think the main reason I chose Latrobe over government bonds is that the process is less complicated and also I like the Latrobe monthly payouts. I think bond payouts are six monthly.
The bond I was interested in purchasing is GSBG23 which pays 5.50% interest & matures in April 2023. You can sell at any time pre maturity. Interest is only paid on the original buying price of $100. Currently, the buying price is $111. Buying 100 bonds @ $111 would cost $11,100 (plus one off purchase fee). Annual interest for the 100 bonds would be $550, not $610 (real interest rate 4.9%).
You can observe daily buys & sells in the CommSec app - appears selling these bonds is not difficult. Government bonds are generally recommended as a safe investment. You could use part of your cash to dabble in them. You would need to open a CommSec account & also a CDIA account for funds transfer (reduces buying fees to $29.95 per purchase). It's not necessary to be a CBA customer to open a CDIA account.
Why do you think that government bonds' process is more complicated?
I believe you can just buy and sell them as shares through a broker. Only pay brokerage.
They are supposed to be only second to cash or bank deposits as safety goes. But the value seems to fluctuate a bit though.
@Mad Max: The process is not that complicated, but at this point in time, another option was simpler for me. Maybe I'll buy government bonds in the future.
It is not necessary to engage a broker to buy & sell government bonds. With a little research, one can do this oneself with a CommSec account (less fees than broker).
@kusala: What I meant is that government bonds like GSBG23 are asx traded so it is like buying shares or ETFs.
Only thing is that as soon as interest rates start to go up bonds price will come down.
And eventually there is really only one way interest rates will go from this low.
@Mad Max: Thank you for this information, i.e. it is important to watch the market & interest rates when holding bonds.
These guys have a history of lying to their clients. People should DYOR before buying their investment products.
Friday 18 December 2020
20-333MR ASIC commences civil penalty proceedings against La Trobe Financial Asset Management Ltd
https://asic.gov.au/about-asic/news-centre/find-a-media-rele…FOR IMMEDIATE RELEASE
2015-235Washington D.C., Oct. 7, 2015 —
The Securities and Exchange Commission today announced that three private equity fund advisers within The Blackstone Group have agreed to pay nearly $39 million to settle charges that they failed to fully inform investors about benefits that the advisers obtained from accelerated monitoring fees and discounts on legal fees. Nearly $29 million of the settlement will be distributed to affected fund investors.
https://www.sec.gov/news/pressrelease/2015-235.html
Note
To withdraw funds at maturity, Latrobe requires 31 days written notice from the customer. Otherwise, funds automatically roll over. It is up to the customer to instigate this as they don't send reminder notices (as do banks).
Another option is Rabobank pays 1.35 or 1.45 from memory.
Have you thought about investing in an account over seas with provides better interest rates than here? I have an account in India so I do that for myself.
I have an Australian friend living in Vietnam. I don't know the current rates but a few years ago he was receiving 12% interest on his savings account. Of course, the corollary of this is the obscene interest rates locals have to pay when borrowing money from banks (or money lenders) for mortgages etc.
Interested to know also.