Hi Guys,
As we all know, interest rates for savings accounts are awful, so my question is very simple (and complex at the same time). What would you do if you have 150k cash.
Term Deposit, buy an apt, shares ?
Tks
What would you do with 150k?
Gostoso on 25/07/2016 - 18:56
Last edited 25/07/2016 - 18:57
Last edited 25/07/2016 - 18:57
Comments
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What happens to the warranties of the stuff you resell? Does it begin at the date you purchased it, or the date you sold it? If the former, do you inform the buyer that warranty began with you?
A washing machine is like a share. Buy low, sell high. Put it in your car, that's 20 minutes gone. Also this "washing machine share" loses 70% of its value within 30 days of buying it. So you better return it for a full refund within this time period. Fridge shares give you a bit longer. How many fridges can you fit in your guest bedroom? That's all that matters here guys. Squeeze as many in, profit, watch your $150,000 freeze to death.
Get financial proper (and legal) advice. Need to understand what your objectives are and your risk appetite.
Not sure why this was negged. Its quite sound advice, $150k is a fair chunk of money and these guys have the expertise on Wealth Management than most. RobMel even asked the core questions a good financial planner would ask.
He is right, we have no idea of your age and risk appetite.
If i am 20, I will buy high risk stock.
If i am 30, invest in property or low risk stock.
If i am 40, properties
50+, bonds (need more underwear)
60+, bonds and term deposit.
70+, term deposits.
80+, graveyard.
"What would you do if you have 150k cash."
What I would do may well be entirely different to what you would do. How we all invest is informed by different ages/risk appetites/perspectives/existing holdings.
Personally, I would put it straight into my PPOR mortgage as the rate of return after-tax on non-deductible mortgages means that it is a very good rate of return.
If you don't have a mortgage, have no other investments, are relatively young, and not needing to liquidate the investment for some time, I would look at ETF index funds.
What is your current housing setup?
What is your age?
I assume $150k is savings balance and no other investments.I'd probably set aside a bit of money for free sending, say $20-50k and put the rest into investments. Since I am young, I would still have a VERY long investment horizon and put a larger majority (say 70-80%) of the remaining cash into shares/term deposits/Nigerian Price funds. The remainder goes to more liquid investments like high interest savings account (which yes I know is appalling).
Obviously I will do a proper wealth management analysis before doing putting the plan into action, because as they say "A man who doesn't know how to handle their wealth is a man with no wealth at all."
Is there a single term deposit offer anywhere that is bettery than just a general savings account? None from what I've seen.
I asked this question of the lady at the bank when I saw her, and she gave me her "discretionary" term deposit rate, which was marginally better than the HISA one. Maybe a better or worse deal depending on how you see it, but I figure that with a HISA you're almost always required to not withdraw in a given month in order to receive interest, which effectively locks you into a permanent term deposit. At least with an ordinary TD I can withdraw to my liking at the end of the term.
Unsure what bank that is but ubank is currently 3.17% for savings account, no penalties for withdrawals, only need to deposit 200 per month. (even widthdrawals larger than 200 are okay etc). So money isnt locked in at all.
most term deposits are barely 3.0% if even that (havent looked for awhile).
Look for the next brexit gamble and then invest in that or try and gamble on other upxoming current events (i dont know of any, maybe in that subreddit? idk?
Source explanation from reddit but the actual source of the question and revealed and answer is in quora.
https://www.reddit.com/r/wallstreetbets/comments/4qposd/this…
https://www.quora.com/What-does-it-feel-like-to-be-secretly-…
I was able to predict google apple minecraft and bitcoin and brexit and a few other things but i forgot about pokemon go aka nintendo share prices. After this current time period i think my futurefu gets a little bit fuzzy. Idk i have forgotten now i made a mental list a long time ago and it all came true or most of it. Others may have too i presume but not many. It gets a little fuzzy now. Haha lol like my blurry vision. Games are doing well now but they fade off a little bit later i think so maybe invest in some sort of vr or neural linking start up now then pull out when the hype reaches max lol idk.
If my future-fu is still correct the next big one will either be space or robots/ai. Unless ofcourse somebody invents a new source of clean or powerful energy. I like trying to predict world events. Yes maybe the aliens will come if the robots dont get us yet :)
Hi AlienC,
Have you tried to invest somewhere and get some actual returns ?
I'm also thinking to invest in the following are:
Gold:
Buying gold miners stock in ASX if there is anything that is good.Silver:
I guess it is too late since Silver has already sail away to higher priceElectric Car:
Tesla Motor sharesElectric car battery:
Lithium miners stockOther:
Uranium Stockwhich one that you think is going to be better ?
TL;DR AlienC has no idea.
Were you high when you wrote this?
Typing anything more than four line in a paragraph should be illegal in a forum.
In your future, do you see yourself learning to use punctuation?
I wanna say lithium but tesla looks promising too. Who knows they all look good. But don't invest imo. Stock up or spend the money on safety and survival gear. If my premonitiins are correcr something big bad is coming but i dont know what. Prepare for all scenarios is all i can really say sorry i know i sound like a kooky fortune teller but something worldwide scale feels like it is going to happen bigger than say 9/11 panic wise or world war 2 death toll wise haha lol i am sorry i just dont know. Shits gone down hill and crazy yo. Who owns digimon or dragonball z maybe short term invest in them i dunno or create the next dbz digimin pokemon go etc =/ although everybody is probably trying to do that now..
The world central banks are printing money i.e. accumulating debt, to infinite; heading to financial suicide. The only thing that will stop this is the re-establishment of the gold standard - but the 1% won't want this as they can't rob the population of their wealth easily at a press of a button. A global financial reset will be triggered, likely resulting in World War 3. This is an inevitable outcome and will be witnessed in our lifetimes. Great depression is going to be minor in comparison to what's to come.
printing money i.e. accumulating debt,
Sorry, but you've been reading from people who lack basic comprehension of economics. thats OK, its complicated.
Printing money and issuing debt are two very different things. Kind of the opposite of each other.Everything else you read on those same "conspiracy"-type site is highly exaggerated at best.
Commodity stocks are too volatile for my taste. Tesla got downgraded massively because people don't believe Elon can deliver the promise and the stock subject to currency moves as well. I will put money on vanguard ETF. Maybe you set 5% of your investment on gamble stock like Fintech or Biotech company. I have share on Actinogen who is trying to make Alzheimer drug.
Two or three properties deposit.
This is not a bad idea.
However, they should be properties that increase in value quicker than rate of inflation.
Majority of properties in Australia rise about 4% in value in a year. The cities in demand usually double that.
So after all the duty fees, risks, and adjusting for inflation, its sometimes very compelling.
Other times, not a compelling choice.
Eg/
Slow growth, adjusted for inflation:
Year 0 = $150 K
…
Year 16 = $281 K -$20K expenses = $261 KBut a compelling growth:
Year 16 = $514 K -$20K expenses = $494 KAnother idea would be to buy stocks.
Buy from well known companies (ie/ long-time, stable companies).
And buy them when they're low.
Wait on them a little while, as their value goes back up to their average.
Sell off stock.
The net profit is lower than hitting the low-to-high, or the volatile stocks.
But this is a VERY safe, and practically a surefire way to make money.The average stock broker increases their money about 5% pa.
That's because they generally win around 25% and lose around 20%.
The smarter guys can consistently hit the 15% average return pa.
You should strive to gain 10% pa, especially being smart and using this cheap tactic.Don't forget to account for annual inflation which is between 2-3% pa (average).
So if you did this you could see your investment grow as such:
(10% - 2% = +8% gain adjusted for inflation)
Year 0 = $150K
1 = $162K
2 = $175K
…
16 years later = $514 KOR
(8% - 3% = +5% gain adjusted for inflation)
Year 0 = $150K
1 = $157K
2 = $165K
….
16 years later = $312 KOf course, don't forget to HEDGE the money in other valuables.
It can be art. It can be slabs of silver. It can be property.
Because leaving money in a bank, it just loses value.
.
.
.
.
At the end of the day, it all comes down to YOU.
How much do you value money?
How much time will you spend to do your research?
And work at investing the value of your money.(PS These are off-the-hand examples, just trying to broaden your imagination)
That does make sense Kangal !
Do you have some stats to go with the consistent 15%p.a. claim? Very curious to see.
Blackjack and hookers.
Bacon and liquors.
Vietnamese Pho and mie goreng
is blackjack some new slang term for cocaine?
3,923 thai long time hookers (@ ฿1000 each) .. that'll keep ya busy for the next 10+ years .. you could make a documentary, making heaps more money + fame .. it'd be like supersize me meets leaving las vegas, but with more hookers
All to Red??? hehehe
Put it all on black.
all on Player
Investing $150k is just delaying the inevitable: What would you do with $155.25k?
Alternatively you could go crazy and do something like buying a nice lunch for 15,000 homeless people, and become more famous than Kim Kardashian!
Brilliant !!!
Invest in a cheap Ferrari.
Then do some Uber driving ?
buy Nintendo stock?
You miss the bus on this one :)
Indeed, it's dipping again because they only get 1/3rd of the profits.
Pay debts with the highest interest firstly moving to lower interest charging debts like mortgage.
If you don't have any of those then put aside $10k aside for personal spend like holidays etc. The rest purchase a positively geared property in growing places like Brisbane for eg. You can either forget about the property and let the tenant pay your mortgage or pay it down quickly if you can. Once that's paid off, use the capital to purchase the next one, so on and so forth. The only way to win Monopoly.
Ozebee,
Why not invest in Hobart or Zeehan TASmania for high yielding property ?
Hi SB,
I just don't know much about the TAS property market. But if it's great, then why not? The concept is still the same.
Drugs and strippers probably in Vegas!
If it were me:
-$100k on my mortgage
-$15k on family holiday
-$30k on newer cars
-$5k for various 'fun stuff' eg upgrade the TV, clothes for the wife etc.ups.. i was reading your post as "upgrading wife" after "fun stuff"
Wife is great, no upgrade required. Wouldn't mind an upgrading toddler to a model that actually sleeps through the night though.
It will get better once they turn 18 and leave home..
This generation's spawn can't afford housing by being artists, poets, and baristas? No way..
If i had 150K:
-$100k on a deposit for a second home (assuming you have your first)
-$10 to the fam bam
-$30k on newer cars
-$1k for overpriced S7 Edge
-$9k sitting in the bank for a rainy day
If you have a mortgage, put it all against that in an offset account.
If you don't, speak to a financial advisor and get advice based on your age, situation etc.
Put it on the pile with all the other money.
amg a45
Nissan GTR
r34. it will go up
Unlimited erotic massages and happy endings
83 marrickville road brah!
Midas!!!
I'd put it against my mortgage.
But RBA is expected to cut the interest rate once more.
Having 150k in your house lets you sleep a little easier at night, that if something were to happen to your job, it won't all be taken away on the spot.
That's pretty priceless.
Long term invest in shares.
go back in time and invest in bitcoin
- Cocaine
- Whores
And squander the rest!
Give the money to me.
What would you do with 150k?
… So you would give your money to yourself?
No, the OP gives his/her money to me.
Do you have trouble understanding the question? OP is asking you what would you do with 150k.
@ronnknee: OP also asked everyone, so everyone else can give their money to me. Do you have trouble understanding my answer?
Annnnnd taxman will collect a half of that money for CGT. What a waste.
Look for the real owner!
ive got an amount approaching this now. im actively looking to use it as a deposit on my first house.
if you already have a property, use it to pay down your mortgage (or at least leave it in your offset account). at current mortgage rates, this will have the biggest impact on your overall financial position (since you pay tax on interest earned, but not on interest saved).
Buy the most limited edition of hermes bag. You will end up doubling your money in 3 years
Impressive sets of advice.
Mine is
NOT TO:
Do not invest in shares, unless you know what you are doing. The whole share market hype is for people with knowledge to take money from people with less knowledge
Do not buy new car / clothes / stuff … that has simply no return valueI would try to become your own boss / entrepreneur.
keep 100K for surviving the next 2 years without salary, and put the remaining 50K into a business.Not sure why you got negged. I actually agree with you
i upvoted you .
That's old thinking. Many new cars appreciate. Flipping cars can make people fantastic money. It's just supply and demand. I'd use the $150k as a deposit on a McLaren 675LT Carbon (if I could get one) then wait for someone with a money truck to back it up to my door.
so how much do you expect to make after taking out a 450,000 loan and paying for insurance and fees?
On a 675lt Carbon? I reckon you'd be able to sell it on for at least $800-1mill. People were flipping Mustangs for $20k over rrp, same with RR Sports, Tesla Model S, GT3RS, and now the holy grail is the Porsche R, some of those are trading at up to $1million, $600k over RRP.
yeh that almost never happens in australia, maybe in the states or UK where the number of millionaire car enthusiast are way higher than what it is here, i dont even think there is a bugatti veyron in australia, nor any of the trio hypercars, that really shows the level people are willing to spend on cars here
Exactly. A friend of mine has had two GT3's, a Boxster spider and a bunch of "boring/regular" Porsches and even he couldn't get a 911R.
Nobody is going to sell you a premium, limited edition car, without a history with the marque. Especially if they think you're going to flip it.
Sure, you might have made some money on a mustang (demand was high because ford under priced the first batch due to the strong dollar) but there's a heck of a lot of risk as well as costs associated with the transaction. More so when you have to supplement the purchase price with finance.
There is a Veyron in Frankston, outside of Melbourne. The guy also owns a Mclaren P1. Technically because they are both LHD neither are road legal. There are ways around this however.
If you are talking about the Holy trinity, there are multiple LaFerraris in Australia and at least one 918 also.
@YellowDieselGolf: They don't have to be hypercars to flip and make a profit. You just have to read the market. The upcoming Range Rover Sport Coupe will command a premium. Pretty much any Ferrari commands a premium second hand, (California aside). If you can get in early on any premium model, and have one of the first shipments, you can often sell at a profit. Think AMGs, RS Audis, etc. No doubt the last run of V8 commodores will also command a significant premium the second they leave the showroom floor.
Give it back you little thief.
buy an island
With the ocean level rising? Bad Idea.
Al Gore and Tim Flannery recently bought beach houses, there is no rising sea level of any significance.
Buy and Sell UCS Lego, best return on any market in last 10 years ☺
IVI on 25/07/2016 - 19:30 Comment score below threshold.
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