How Should I Invest $50K over 5 Years?

I've Googled, I've searched through these forums, I can't find a straight answer. I'm after max safety. I'm guess fixed term deposit? But the interest rates seem very low, like barely worth my time. Any suggestions?


  • +16

    Max safety = some kind of bank deposit but also = min returns. Savings account, term deposit etc but yes, interest rates are extremely low currently and locking in a term deposit is a bad idea IMO. You'll get the same or better from a savings account with the chance of interest rates increasing over the 5 year period (and chance of it falling).

    • +16

      Technically.. Bank deposits will generally be a net negative when you account for inflation.. but I guess for max safety, can't beat that.

      • -1

        VAS was down 2 % today, and so that's a years worth of inflation

        • +19

          VAS is up 25% in the past 12 months, and so that's 12 years worth of inflation.

          What's your point?

          • -4

            @buckethat: I was just saying yesterday's return

        • +8

          OP is investing for 5 years, not 5 days.

  • +9

    Risk and returns are directly proportional. If you don't want to invest in the stock market (low to high risk depending on what you choose) or crypto (extremely high risk but also possibly high returns), then term deposits or high interest savings accounts are what you should look for (low risk, low returns).

  • Q, How Should I Invest $50K over 5 Years?
    A. Gradually and Diversified.


    You seem to be looking for a vehicle in a hurry if you have a five-year horizon.
    Interest Rates are super low which is great if you are a borrower but not if you want to invest.

    What are your hopes (and dreams) for the funds?
    Do you want to keep pace with inflation, receive an Income, save for a Home Loan?

    • +2

      Interest Rates are super low which is great if you are a borrower but not if you want to invest.

      Actually, they're great if you want to invest; but terrible if you want to save.

  • +27

    Go for a cheeky 3 day 5% ETH swing trade

    • +7

      Be sure to leverage 120x first!

      • U got big balls if you’re into leveraging.

        • +8

          The secret is to leverage your balls

      • +18

        Don't forget to shout the following:

        When making the trade: FOMO! YOLO!

        It goes up in value: To the moon! Lambo!

        Price falls and you're underwater: Paper hands! I have diamond hands and will not fold.

        Price continues to fall and you're margin called: This is fine. I'm just here for the tech. Few understand.

        • hahhaahah this is bloody gold

    • If it keep losing level 2333 is next Either retest 4.168 or 6.618, IF not gain those level 12.618 it goessss

  • +10

    You can get 1.35% with a bit of effort from ING. Much higher than any term deposit.

    If you're after max safety then anything short of putting it in the bank and leaving it there is unacceptable.

    • +1

      if op is 18-29yo then westpac do 3pa up to 30k

      • Not anymore it’s 2.5%

    • Bullion?

  • I would go all-in on this if I could.

    Its performance is backed by the government and guaranteed to only go up to the right for the next 100 years.

    • +3

      I've been expecting inflation since 2008.
      Had a fixed mortgage that cost me thousands as rates kept falling.

      I am sure I will be right one day. But will I live to see it?

      • +4

        Considering how old you are now, I'd say no.

      • +1

        Sounds like me lol, except now, third house lucky, I seem to be getting somewhere but I'm 55+…. And I've always gone with ample good advice, from bankers, real estate, parents, friends, accountants and advisors, but none had the crystal ball that had my particular situation!

        You can only do your best. I now also go with fixed mortgage all the time, but don't look at how much I can safe, I look at how I'm ensured I can afford the mortgage for years to come without having to worry about madly increasing interest rates. Always better than renting!

        I've lost one house when interest rates went 20+, as I had no idea for how long they would be that high, and one home I lost in a divorce - after 6 years the local real estate hadn't gone up a bit. And getting a mortgage for someone like me without permanent work and on a disability pension requires a small miracle each time!

        • "And getting a mortgage for someone like me without permanent work and on a disability pension requires a small miracle each time!"

          Thought, if you are on some sort of Centrelink payment, there's no way any bank would approve your mortgage?

    • +1

      What are we looking at exactly? I genuinely don’t know.

      • +2

        CPI (you've got to zoom right in to the top left hand corner… Its hard to pickup)

  • +1

    Judo Bank is 1,60 if you want max security,
    I am with Australian Unity Diversifiied Peoperty Fund, they own their own buildings which are rented out to tenants like woolworths. They pay a monthly dividend which you can reinvest for discount units. But the good thing is the value of the unit gets capital growth.
    I invested just under 80000 in dec, now worth over 92000., bit we did get a special dividend once when they sold a building.

  • +1

    I can't find a straight answer

    Cause there is no straight answer.. it changes daily.

  • +6

    Why do you need max safety? Will you need to use it for a house deposit in 5 years? If so, bank deposit is only real option unfortunately.

          • +30

            @NamandSpam: Sorry to be blunt, but your 'answer' is precisely the reason I don't want to invest any more into crypto.

            Best of luck with it though.

            • -8

              @TEER3X: there's many other reasons as to why its such a good investment. So you have invested in crypto and im assuming youve made a loss?

              • +15

                @NamandSpam: No he hasn't.
                He just doesn't like blind faith, and exaggerated optimism. It scares him. And he's got a point. That's the same spiel that Snake Oil salesman, Hustlers, and Scammers use.

                And even beside that, having so many clueless people buying into something carelessly is damaging to that product or market. It leads to a "bubble" where it is priced more than it's true worth. And when the time comes to sell, this sees a substantial and sudden loss of value, and a lot of bankrupt/sad people. I don't know if anyone here has experienced inflation when living overseas, or is old enough to experience the DotCom Bubble, or lost assets (or employment) due to 2008 Global Financial Crash. Those were scary and frustrating. Crypto is showing the same alarming signs.

                Those are legitimate reasons to stay away. With that said, see my original comment, I am a long-time skeptic. I personally still have trust that it will weather the storm for such medium-term investment. Famous last words, right?

                • +7

                  @Kangal: A few points on your comment…

                  Yes - crypto shows all the signs of the dotcom bubble. It's a technology which the world will be running on in the next few decades, just like the internet. Cryptocurrency and it's underlying blockchain will be ubiquitous throughout society. Your grandparents will be using it without even knowing it or how it works - the same way as they use facebook on the internet.

                  Some of the worlds biggest companies today came out of the dotcom bubble - Google, Apple, AWS. If you didn't understand the underlying technology of the internet back then you would have bought into the shit companies of the dotcom boom like the petstore that labelled itself a dotcom internet company because it had a website (that you couldn't even order from).

                  Crypto investment is now very safe as long as you understand what the protocols do for the crypto currency you are investing in (i.e. which industry it is looking to disrupt, how it would do this better than the traditional industry, what is the global market cap of said industry) and researching the team building the protocol and and working out its fully diluted market cap. This is almost the same research you would do for any company your were planning to invest in on the stock market.

                  I will concede your point that clueless people buying in could be damaging and lead to a bubble but again - no different to the stock market. know the game - it's time in the market, not timing the market, dollar cost average in so you are not buyng everything at the top and manage your risk profile by only investing in the most well known cryptos such as BTC, ETH, DOT etc…

                  it's good to offer a balance of opinions to people in the forums and i solute you for that but I think all of your points when looked at from another angle actually support the crypto play, especially your point on inflation and how BTC was designed to counter that.

                  • +9

                    @mitchalbrown: The currencies of the future will not be the dodgy cryptocurrencies being created in people’s garages of today. They’re a fad, promoted by wishful thinking and snake-oil spiel.

                    • +8

                      @BigBirdy: My thoughts exactly. The benefits and value of cryptocurrency is irrelevant when people are investing in coins directly.

                      It's like telling everyone how valuable and useful lithium is, then investing all your money in a speculative lithium mine. The risks you are ignoring are not outweighed by the value of the underlying product

                    • -2

                      @BigBirdy: When i hear this I know i'm talking to someone that doesn't fully understand financial instruments. usually the same people who put their money in a "high interest" savings account paying 1.5% in a 5% inflationary environment thinking they are winning.

                      seeing cryptocurrency purely as "money" is the tell tale sign you don't understand what cryptocurrency is and how it works. Anyway, there's no point promoting it to people who are not interested in truely understanding it. I just wanted to add counterpoints Kangal's comment as it had a few points which needed to be addressed from a crypto point of view.

                      You'll have to live with the fact that you let a generational opportunity to invest in the 4th industrial revolution at the ground level pass you by. More bitties for me!

                      • +1


                        4th industrial revolution

                        That's the kind of rubbish I'm referring to.

                  • @mitchalbrown: The crypto peopl eare using when it does become mainstream will be government controlled. Anyone thinking otherwise hasnt been watching the last few thousand years…..

                    • -1

                      @surg3on: I can't argue with a comment like this. it shows a complete lack of understanding of decentralisation. if the government could control it and or shut it down, they would have done it by now.
                      they may be able to push regulation onto centralised exchanges like coinbase and FTX but crypto is global. The US risk over regulating it and pushing all the innovation offshore to countries who are embracing it. They will then also see one of the biggest movements of the 21st century pass them by as they resist change and fail to adapt.
                      Only a fraction of the capabilities of crypto have been thought up and implemented at the point. Once you stop thinking of it as "Internet Money" and start thinking of it as the immutable rails on which anything and everthing transactional will operate on trustlessly you will start to understand.

                      • +2

                        @mitchalbrown: Ah ha ha. They havent shut it down because the transactions are a tiny percent of a tiny percent and primarily linked to either speculation or already iilegal activities. As soon as its linked to a physical presence like buying a Tesla it can be regulated if the government wishes. You need to stop thinking of it as having some inherent gain over other forms of anonymous payment.

                        • @surg3on: ok… i can see you still can't see past the concept as a payment method. thats ok. I'm not here to educate you, i'm just offering an alternative perspective to OP because it seems there are people here giving advice or opinions on things they don't understand. hopefully OP see's our back and forth and can use these as a basis for doing their own research. It's important to ask yourself these questions, research in crypto will answer them, Most people who gain a solid understanding of blockchain and crypto invest with great confidence.

  • buy TQQQ

    • buy QNT

      • +1

        buy XLNX

        when the merger goes through later this year you make an instant 16% then you add to that whatever upside AMD has.
        AMD is up 100% since Dec '19 and wouldn't surprise me if it did that again over the next two years.

  • +7

    Bet on black, make that a 100k

    • +4

      I bet 50 dollars on red and I won! Best day ever!

      • What happened in next day betting

        • +1

          He got blacked

  • +4

    If you are 100% sure you're locking the money away Plenti (formerly ratesetter) is an option. Better rates than banks.

    I'd personally put the money into a vanguard ETF for a better return.

    • +2

      I'm currently getting 5.7%* from the National Energy Fund via Plenti.
      *Dropped to 1.5% for New Investments. :+(

      • +2

        Rates were good after covid hit.

        I'm disappointed that they limited rates… Should have let the market decide.

  • $24k on Black, $24k on White, $2k on Zero
    ; )

    • +8

      What about red??

  • +12

    If you've got a mortgage put it on that as it offers a risk free and tax free saving.

    • +2

      What's the tax saving with this?

      • +3

        They can't tax you on the interest saved. If you invested the 50k instead you'd be up for tax on any profit.

        • so there a pro's to a mortgage..? maybe we shouldn't have paid the payout figure … aw man

          • +2

            @capslock janitor: Depending on your risk appetite, you could have borrowed against your mortgage, paid the ~2.5%pa interest fee and invested into a relatively safe fund (eg VAS or VDHG). As long as you can prove that the money that you borrowed was for investment then you can claim the interest as a tax offset. If you keep the asset for more than 12 months then you get the CGT discount - so only pay half the tax on it.

            On average the ASX returns over 7%pa, and you'd be paying 2.5% interest and claiming a third of that back on tax.

  • At least 30% Bitcoin - honestly, have a look at , good luck

    • +5

      What a waste of a 4 letter domain.

  • +6

    Vanguard or iShare ETF's

    as always - slowly and diversified (many different vanguard ETFs to choose from)

  • +2

    In yourself!
    If you gave debt, p155 it off!
    The end!

    Depending on your age - maybe forget 5yr and put it into your super!

    Grab a few shares and put the rest in a term deposit (but the TD won't pay all that much).

    • +1

      +1 for super or paying off debt.

    • +1

      If wanting the super option, then spend the 50K on living expenses and salary sacrifice any of your pay over 45K instead.

      • +1

        Yes, you should be able to SS some of it for super top-up.

        I'd consider doing part super, and why not spend a little on yourself too. Always good to gift something for yourself and/or your partner and/or family too!

  • +1

    All in ETH

  • -1

    My brother has this investment call triumph FX i think. seems to hv good returns. seems no one here has mentioned it b4?

    • can the person who neg me explain why i got neg for this comment?

      • Forex trading isn't an investment. It's a financial instrument used for trading currency.

  • +1

    If you want max safety then its a savings account

    If you long term investment, put it back into your mortgage

  • YOLO all in Dodge and go the mooooooooon and then come back crashing down in tears…

  • +3


  • Thanks for the replies everyone, basically my plan was, I live in the country, I want to live in the city for a few years while I'm still young enough to enjoy it. So, I was going to selel my house (make about $80k profit), pay off my personal loan ($20k), and all the other costs for selling. Hopefully have about $50k left over, Invest that for 5 years, when the prices drop again move back into the country. I was going to buy an apartment, but strata fees, and also the fact banks won't lend on anything under 50m2 makes me wary. Also rent prices are super low atm. I know they'll rise, but the for same price as mortgage repayment I could live in a really nice apartment (yes I know dead money, but only for 5 years).

    • +16

      Doesn't sound like a good financial move to me.

      Your 50k is going to earn you nothing over five years and will probably be worth less than when you started. (due to inflation)

      When you rebuy you have to pay stamp duty again.

      Can't you just hang onto the house and rent it out or something?

    • Have you accounted for tax on the 80K profit? Or is the 80K profit after tax?

      • It's his PPOR, there shouldn't be any CGT.

    • +9

      This sounds like a terrible plan.

    • +8

      Keep the house
      See if you can remortgage to cover the personal loan?

      A house of say $400k will probably be worth $500k in 5 years, you've got $100000 profit

      What town are you in? People are moving country at the moment, you should rent the house out and take advantage of the depressed rental market in the cities

      It's much easier to make a profit on $400,000 then it is on $50,000