Say one has 300K-400K and want to put into high interest cash accounts.
Is below the best way to manage that?
A. Open ING Saving Account that is highest rate in market for over 35 year olds (looks like it is 5.25%). That has max limit of $100K.
You need to do bit of hassle of increasing balance, withdrawls, etc.
B. Ubank: This is next highest interest of 4.6%. Their max limit is $250K and no hassles.
Is above the best strategy you can do for saving accounts? Ignore the introductory offers.
Check OP's post history. Ozbargain is their financial advisor so technically they are doing what you suggest.
Looks like OzBargain is their life advisor at this point…
Life must be tough for them if they follow any of my sarcastic advise advice.
How to lose 5k in a hour
5000 upvotes.
they always quote 1 hour but its always more
good point. where do you start finding financial advisor? Is there any financial advisor comparison/review site or just need to find someone with random google search?
Thanks. Are you saying Google is trust worthy and will not lead to financial planner - Ben Jayaweera?
Chatgpt is probably a better search.
Don't trust a financial advisor, most of them are crooks.
Entrust yourself to the wisdom of OzBargain
Caddick… Melissa Caddick.
Can triple your investment quickly on paper
Isn't she's got a cold feet (literally) 🫣
Most financial advisors takes 2-5% of your overall investment managed by them yearly. Doesn’t matter if they are making money or losing money for you. Kinda suck if they can’t get at least 6-9% return per year because after tax, you might not be better off.
Tell me you've never seen a financial advisor, without telling me you've never seen a financial advisor.
I know, let's get financial advise from a bunch of random internet people! Oh wait…
The trick is to find someone not quite so invested in making themselves money - ie someone from your super company. And still take their advice with a fair chunk of salt.
*advice
Thats not enough to justify seeing a fin advisor. Min. would be 1m. Honestly 300k is not much. Just split it between ubank and another major bank (not NAB). Easy.
no way… a statement of advice is what? 3k a few years ago. So you're saying chuck 1+% away just to be told basic things that you should already know
If they are asking here they don't already know.
sometimes common sense is alien here
Have you ever dealt with a financial advisor?
So hard to find find a good one.
Some try to sell you products you do not want or need, they will end up with life insurance, income protection and disability insurance.
I have a good accountant, but the last time I used a financial advisor it was a waste.
For some it could be just a contingency fund that needs to be readily accessible.
I would put it into virgin and lock it at 4.85%
First you need to find one.
There's plenty right here on Ozbargain.
💀
Not me.
I'm a Virgin. Put it into me. I mean, give me the cash.
Do you have a disc drive?
a holes a hole A drives a drive
Floppy disk drive.
GD-ROM Drive
Agreed regarding financial advisor. Also FWIW I'm under the impression that anything over $250K in a bank is not covered by the Financial Claims Scheme. So you might have to at the very least have it across multiple banks if you're keeping it in the bank for safety reasons.
Why would people downvote a correct statement?
The FCS is a government-backed safety net for deposits of up to $250,000 per account holder per ADI.
Keep in mind it's per authorised deposit-taking institutions (ADI) not per bank. ie many banks etc are owned by the same ADI eg UBank is owned by NAB so no point depositing into both.
Why would people downvote a correct statement?
Some people are morons.
Di Ubank change to 86400? They merged and I think they now under their own ADI (they now use the 86400 BSBs)
I wonder how many people had $250k in each 😆
Di Ubank change to 86400? They merged and I think they now under their own ADI (they now use the 86400 BSBs)
BSB has no direct relationship to the status as an ADI.
From NAB -
National Australia Bank Limited (NAB) is pleased to note the transfer of 86 400’s banking assets and liabilities to NAB is complete. 86 400’s banking business will now operate under NAB’s Authorised Deposit-taking Institution (ADI) licence.
86 400 became part of the NAB Group on 19 May 2021 and is joining with NAB’s UBank division
https://news.nab.com.au/news/transfer-of-86-400-banking-asse…
I have an Incentive Saver account with St George/Bank of Melbourne. It's currently at 4.5% variable as long as you don't make withdrawals and make $50 deposit a month. I guess it's ok as long as you don't need to make any withdrawals. More for like long term savings that you don't intend to touch. There is no introductory term too. Much easier than having to shift banks every few months when the intro offer finishes.
I have done the same. Only $20K though
Buy gift cards in the Classifieds
A better money spinner is to sell gift cards that you don't have to gullible people.
where might i purchase these cheap gift cards?
Under several mattresses depending on sleeping preferences…
That way you don't have to :
A. Post for accountant recommendations.
B. Pay tax on illicit income.
B. Pay tax on illicit income.
It is possible to have several hundred thousand in savings without it coming from illicit means fyi.
eg: any techbro who lives at home with no bills.
I'm in a similar situation.
Lets say one had $400k..
$400k is $1666 a month at 5% at Rabobank.
That same figure in UBank is $1,533 a month at 4.6%.
So I would say its worth re-considering introductory offers with the sum of money you have.
In a $400k scenario, you will get an extra $532 over the 4 month introductory period with Rabobank vs. UBank.
If you can, i'd put $75-80k in ING, make it your daily account (easier to achieve their complex demands..), then bounce the other amount around sub $250k accounts on introductory offers - AND have a UBank as a fallback if there's a gap between offers.
NOTE: Yes I am assuming over $250k in Rabobank, im sure you could get 2 accounts that would hold over $400k with an average interest rate of at least 5%.
What do you plan to do once the introductory offer is finished? Close and open account within Rabobank or switch around to someone else?
Thankfully I only need it for a couple of months, but if I had it for longer, i'd be bouncing around different offers and keeping UBank as an option if there were no alternative available.
These offers always pop up.
Also, Rabobank has increased to 5.15%.
Thanks
Pre-tax…
When you quote these figures and considering the tax implications? Depeding if you have a job and what that salary is, this extra income may put you into a higher tax bracket and erode a lot of this gain.
Moving into the next tax bracket doesn't increase your tax. Only the fraction of your income that is in that bracket pays that tax.
I don't fully understand why people see making more money and paying more tax as a negative?
Do you get a pay rise at work and decline it because of tax implications?
You're still making more money overall…
Maybe I haven't stated the obvious here.. but if the OP has a home loan then that is the best place to put the money..
@rambutann: Tax isn't really taught in schools, so people finish highschool and enter the workforce with no understanding
I don't think dlakers3peat was implying otherwise. They specifically said "erode a lot of this gain", which I took to mean the return shrinks because some of it will be taxed at a higher rate.
If they had said something to the effect of "you can lose money blah blah" then I'd be questioning his understanding more.
@shauntp: Yep, sounds like a lot of effort for 400 bucks if you are going to get 40ish % taken in tax.
But we go to a lot of trouble for less around here.
@WhyAmICommenting: OP could be on 0%..
And even if they were on the highest tax bracket, $200 after tax for 20 minutes of filling in forms seems like a decent return on investment to me.
I'm in a similar situation.
Oh me too. I'd say all of us OzBargainers are!
Ahhh, how the other half live 😓
My dorm mate in college was basically just waiting for his father to die so he could inherit the controlling stake of a large medical centre in their region. His only job in life was to not upset his father and be disinherited before his father died.
I knew a guy like that in uni. Problem was he lived a sheltered life then suddenly had access to booze, drugs and the popularity money can buy.
He dropped out after the first semester after failing most classes. I'm guessing he upset his father.
My dorm mate in college was basically just waiting for his father to die so he could inherit
Knew someone in that situation.
Well, they are still in that situation as their father has so far managed to not die (he recently turned 90).
The 70 year old son (who's scraping by on the pension whilst renting) has spent years complaining about not being able to do anything due to his low paying jobs (never needed to study or work at anything with a future as he will be rich one day).
My dorm mate was "lucky", his father got cancer and died like a year later. He was so happy, he finally got the big Audi his dad used to drive and sold the A4 he has run into the ground. Didn't miss him at all, when he got drunk he'd always tell me that he can't wait for him to die, how weird he thought he was for spending an hour walking around the estate when he come home from work deep in thought, munching on apples from the orchid. I saw his family home once and it was huge, like an Australian Downton Abbey. Of course I was jealous of his family and wealth, but the dorm mate wasn't happy. He was vain, had already had a lot of plastic surgery. Ate his feelings.
@OzzyOzbourne: Can only assume some of the father son feelings were mutual. Probably a father spent all his time and energy making money (likely a doctor himself), and setting strict rules for his son - while taking little interest in his sons life or providing opportunities for the son to gain the life experience needed to develop those rules.
@greatlamp: Probably that is true. But I grew up poor, I'd have traded places with him in a heartbeat. Though if I could swap with him as a baby maybe it would be me wishing my parents dead so I can have their money and the big Audi.
My dorm mate died on heard attack at 36 with no family, his father is the beneficial of his life insurance.
Pokies.
need a feeder account like mystate / unbank (i think) incase income stops / need to reduce balance, that you can use to feed other accounts / pay bills
mystate needs a $20 deposit and 5 paywaves so thats my feeder account into ing/suncorp/me/cua, just xfer $21 back.
i have a perpetual loop that can last 10 years until mystate runs out
sit down and create a schedule of $ movements over the month to satisfy all triggers
id also be putting 100k at least into ETFs drip feed in lots of 10k every month/2nd month
Sorry didn;t understand what you are refering to.
Me too, especially around the $20/$21 bit
this is for scenarios where you don't have regular income going into your savings accounts. one needs to be able to go backwards in balance each month. i call this a feeder account but whatever u want to call
mystate needs a $20 deposit every month to trigger its interest but can go backwards in value, so i transfer $21 back to be on the safe side. Pretty easy to understand
you need a feeder account that can earn interest without needing to grow the balance
thus if you have no income you can set a moving loop of money and all still earn interest
scenario
you have 100k
mystate - $10k (must do 5 paywave, must do $20 deposit)
ing - 90k (must grow balance, must do 5 paywave, must do $1000 deposit)
1st of month - xfer $1005 to you ing everyday
7th of month - xfer $1 to your ing saver
14th of month - xfer anywhere from $1000 back to mystate
over month - go buy 2 cans of tuna from supermarket once using ing once using mystate.. do this 5 times
@Donaldhump: On $100k it's a difference of about $500-600 per annum over a 4.6% comparison rate with no restrictions
I guess if you have nothing else on, it's fine.
You could also split it 3 ways in savings, VAS/VHY and the SPY (S&P500) for higher risk and higher reward
@RatBargain: what if you had 700k in shares already, and 300k for cash
or
wanted to drip feed in your 300k once a month at 20k for 15 months
i personally think the market is ready to blow its load, who knows
@Donaldhump: and crypto conversion - xfer might mean transfer … ?
if your buying tins of tuna - I might defer on your financial advise … ;-)
@Hangryuman: i can go buy lobster if you want
challenge to see who can buy most expensive dinner tonight if you want, post receipt of purchase, you keen winner gets reimbursed by the other
@Hangryuman: where was crypto mentioned anyway, i have nfi what ur on about
tuna is delicious and good for you not a sign of poverty
Guessing you already own your own home so there's no mortgage to pay off? No HECS debt to pay to avoid CPI raise of 7%? No high interest car or other loans, already maxed out super? Must be nice.
maybe fixed home loan @ 1.99%
maybe just worked hard
maybe 50 years old
maybe has no house and rents
maybe just worked hard
lol thinking hard work = more money
If I had that much money just sitting there, I'd go see a financial advisor, but that's just me.