Hi fellows, I am having a hard time making this decision:
Got about 70k in a savings account and don't think current interest rates are doing any justice to this hard earned cash.
I have pre approval to buy a property of up to 600k, but would only do it if there is possibility of a strong capital gain (10 yrs max) - if that so , please advise where to as I don't have experience with real estate. Also do you recommend seeing a financial advisor? (I hear they charge like 10k depepending on the investment)
Would like to hear your opinion
Thanks in advance
What Should I Do with My Money?
Lchowmanly on 15/10/2014 - 23:14
Comments
Definitely something I would be interested too but have no knowledge on the subject, any resources or advice of where to start?
http://www.amazon.com.au/Value-able-Roger-Montgomery-ebook/d…
Good book, and leaves you with ~$69993.53 to invest.
If you want to get exposure to shares but you don't know what you're doing, then a good way to do that is to buy an exchanged traded fund. This basically is a reconstruction of the ASX index (you can buy different ones for the ASX50, ASX100, ASX200, ASX300 etc.) which should give you exposure to equities as an asset class but not require you to teach yourself investing.
Frankly, every Tom, Dick and Harry thinks they can buy some shares and make money but most people are not investing on fundamentals, they don't understand the prospects of the company they're buying and they don't have an investment thesis. They invest because they stare at a share price chart which tells them the price has dropped in the last few months so hopefully it will come back again, or because someone told them it was a good buy, or because they read a Motley Fool article. Extensive academic research shows that after management fees, 75% of professional active investors don't beat the index. Unless you're extraordinarily talented or really lucky, most everyday investors are going to struggle to consistently do it better than people who do it for a living.
Try a Vanguard ETF (ASX:VAS) or a State Street one (ASX:STW) - there are other tickers as well depending on which index. You can buy that over Comsec. If you do want to teach yourself shares as well, then buy a select few companies that you know really well, follow over time and believe have a good chance of beating the market. Have in your mind a rough allocation of your liquid assets that you want allocated to shares and to cash in a high-yield savings account (e.g. UBank, MeBank, ING Direct, etc. you can easily research comparative interest rates). Don't get me wrong, I'm not saying teaching yourself to invest a bad idea, I'm just saying there are ways to get exposure to equities that are much less risky and don't involve a steep learning curve. It takes years to become a good investor.
define strong capital gains.
property is more about cash flow then deposit.
buy bit coins
10% +
so you looking at 2.5 times the original purchase price in 10 years?
10% PA "risk-free" is a pipe-dream/ does not exist as an option. That's why the best rate you can get from established financial institutions at the moment is about a third of that. Sad as it sounds, while 70K is an awesome achievement re financial security, it is not the kind of amount you can actually make money from.
10 years, 10k, but alas no 10% in op
Withdraw all of it, then take a bath in it. Property will collapse soon, stocks next, and interest rates are pitiful for any sort of saving.
Check out the Barefoot Investor. Scott is the first financial advisor I have come across who is actually honest and gives free finance advice. BUt personally, I would invest in a house if I had 70K at my disposal. With record low interest rates and property prices quite low, this is a good time to get into the property market.
http://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&source=web…
Overpriced pile of bricks with hilarious upkeep fees that you will spend and keep spending a huge chunk of your life paying off as a debt ridden slave. GENIUS!
Horses for courses. Believe what you want about where the property market is right now.
Meanwhile renters keep paying me ever-increasing rent and pay off my ever-decreasing mortgage
pls give it to me if you generous
Put it all on Red….
Why don't you dabble in shares?