most likely I would inherite this amount and I’m lost as to which bank I should keep this in. Basically it will be just sitting there, I might add some more cash but it won’t be a monthly transaction.. any help
What Do I Do with $100,000
Layla11 on 14/09/2018 - 13:53
Comments
The Australian Government has guaranteed deposits up to $250,000 in Authorised Deposit-taking Institutions so setup an account with NO cards or access except online to put in. If you want to generate interest you can deposit and not touch for 1, 3, 10 years etc to generate interest.
The AGG may or may not be realised in the event of a banking crisis, it has to be 'activated' and AFAIK they relegated that power to APRA last February in a VERY sneaky midnight vote when only 8 politicians were present. APRA is supposed to be the banks watchdog but is basically on the banks side. So the AGG might be worth mentioning…but it might not.
Depends on what you want to do with it.
You could add it to your superannuation. Much better growth there than in any savings account.
I have an ING savings account but to get the best rate of interest of 3% you need to meet a few conditions. You need a bank account with them, deposit at least $1,000 each month and make 5 card transactions each month. There are other options but there's two to think about.
How do you get 3% with that? All I can see is 2.8% from ING?
I must have been thinking term rates when writing my comment. Yes 2.8% is the at-call rate.
Rams has 3% must deposit 200 per month, no withdrawals allowed.
Buy Ripple
buy ripple at 4 dollars and sell at 40c? thanks sir
we'll see another post "What Do I Do with $10,000" in a few months time.
Biggest LOL I've had all week. Thanks.
Rough age bracket?
Financial status?
Life status?
Invest it in a low Fee, index share fund.
Vanguard International 10+% so far
put it all on black
Are you insane?!?!?
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Definitely put it on red.
0 pays better
and it lands on…..00…..
Put 1k on black. Lose put 2k on black. Lose put 4k on black.
Vague question given we don't know anything about you. Pay off mortgage/loans/student debt/buy share/buy investment property/Bitcoin/Holiday/Gambling zzzzzzzzzzzzzzzz
Give it to me, mate.
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put it towards a house or property deposit
With house prices starting to plateau and sales reducing nationwide?
$10,000 for a 1 month holiday in Europe
$90,000 in a high interest account with ING or something
Or $20,000 for the holiday, leaving $80,000 for a high yield investment vehicle.
Thank-you for saving me from writing that. Long live the high yield investments
All Red!
Just sit it in a term deposit for 12 months until you figure out if you have a good purpose or need you can out it to. That way you wont be tempted to waste on on shiny crap that you don;t need. Terms deposit interest is low but it should be fairly safe.
What bank should I be looking at for term deposit
Any of the big ones should be safe, just look around and see who has the best rate on the day. First check the ones you already have an account with.
Parking spot in Sydney CBD for two years.
you can buy a spot for 100k then rent it out
yes, 1 spot for your wheelie bin
Turn it into $0
give it to dasher86.
agree, he's a top bloke.
can I donate too?
Hi OP,
While you're deciding what to do with it, check this out:
https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--e…Might as well put it in a Ubank Usaver + Ulta for 2.81% P.A interest paid montly.
You'd put $500 in the Ubank Ultra, and $99,500 in the Savings account.
This would earn you about $233 / month before tax (depending on how many days are in the month):P.S. RAMS might pay more, but having tried over 8 banks in this country, RAMS is the second worst.
That's a nice spreadsheet.
Ozbargain had a poll on savings accounts in February, it came up with similar results.
Still worth reading as it discusses a lot of the other issues to be aware of in stashing away that much cash.
https://www.ozbargain.com.au/node/360088Looking at ubank website
So if i was to sign up I would start off with the savings account?
As I said I don’t want Monthly repayments
Will transfer some cash into the account but not monthly
Just want my money to grow while sitting there
Yeah it's pretty easy and you don't have to grow the balance. You just need to deposit $200 / month, but you can withdraw it right away. I assume you have another bank account somewhere? For the purpose of this guide I'll assume you have a CBA account but substitute it for which ever bank you like.
Setup the Ubank Ultra account and deposit $500 into it.
This will just sit there chillin n killin so you don't have to touch it.Setup a Ubank Saver account and dump your remaining money in there.
Schedule a deposit of $200 from your 'CBA' account every month on the 2nd.
- Schedule a deposit of $200 from your Ubank account back to CBA on the 4th of every month.
Now this will take care of it's self. Just remember to add your $2.7k-ish per month to your taxable income at tax time.
2.7k/month????
What's wrong with RAMS? You only need to put money in the account, then accumulate interest.
The mobile application and website is easy to use.
RAMS penalises you if you withdraw cash.
It really depends on OPs needs, if they're not going to touch the cash/withdraw often (eg. like once every 1-2 years) then RAMS could be a better option due to the higher interest. UBank is better if you need to withdraw money.
ING is okay, their implementation of the 5 taps to get the bonus interest was stupid.
RAMS online saver is the best at the moment. They may have problems, but there's no problems with their online bank accounts. You never need to deal with a branch or a person.
Nice spreadsheet.
But Westpac esaver is wrong.
I have a spreadsheet with some shares I purchased and it updates real-time, wonder if it’s possible with this? Might be difficult, anyway good job.
@idontknowwhy - great work. awesome spreadsheet. Just what I needed.
Give it too me!
Me to.
If you are a home owner with a mortgage, then pay off the mortgage.
If you are a home owner with no mortgage, and no expected financial outgoings, then salary sacrifice from your salary into super, and live off the $100K. You will have to do the sums on maximising tax effectiveness - over one or more years, and max. salary sacrifice allowed etc.
Short term, I find Ubank at 2.87% interest is pretty good and easy to meet t&c's of deposit $200 per month (Can withdraw without effecting it)Buy a used Jaguar F-Type! (not a serious suggestion, but who knows)
Buy commonwealth bank shares and enjoy the fully franked dividends
What gonna happens to those shares after the housing bubble burst and bad debt start to rolls over ?
Alcohol, drugs and hookers?
But seriously, if you have any debts start by paying off them off starting with the one with the highest interest rate.
If you don't have any debts, I would use it as a deposit on a property. Get it rented out so someone else pays it off for you (positively geared if possible).It's a little difficult to provide any suggestions without knowing about your current situation. Can you let us know a little bit more and if not, I will suggest you see a reputable financial planner. I've met some who are scumbags but there's financial planners out there who are passionate about looking after their clients.
Few examples for you:
(1) 30yo with a mortgage - it might be worthwhile paying off your mortgage. You can choose to redraw the amount out for investment and the interest you pay will be tax deductible. Putting money to super might not be a good idea as you won't be able to get access to your $ for a very long time.
(2) 55yo and has paid off his/her mortgage - consider contributing to super as investment earnings are taxed at a max of 15% and $ can be withdrawn as a pension soon
Buy a high-yield investment Audi.
The other $20,000? Up to you. Put it all on Green. Maybe.Disclaimer: I'm not a financial planner, so take my comments as general in nature.
Not high-yield enough. Use the $100k as a deposit on a 300k+ loan for an Audi R8
Without knowing anything about you
I'd say invest it in yourself go to uni get a good degree and make something of yourself 100k isnt a lot of money in the grand scheme of life but it might be enough to do something that will make you millions in the long run.Just want a bank to put the money in that’s all
Nothing else nothing more
Deciding which one is the difficult partThanks for all the replies
If you're in the medical profession,
BOQ Specialist is a good option.
I'm getting 2.75% paid monthly, no change with withdrawals.
i assume you mean 2.75%PA
yeah, PA paid monthly*
I prefer name banks, just personal preference, not based on anything.
We have a similar amount in NAB Reward Saver 2.5%, no prom period but a deposit every month. We just chuck $100 in. Don’t have to reset at end of term or promotional period.
Buy 50 of the new iPhone XXX Max's or whatever they're called…
column side bets on roulette. 50k on 1of3, 50k on 2of3. Like 66% chance of winning. U CANT LOSE!
Real estate investors pay up to 8% for loans to fund their investments.
You should seek some professional advice from a reputable financial advisory services company such as AMP.
Depends completely on what your plans are. If you want to buy a house in a couple of years, chuck it in a HISA. If you want long term investment, put it in some index funds like VGS/VDHG/VAS.
Do your own research of course but long term they should return much more than a simple deposit/term deposit. If you are young, pick more aggressive fund/s, as you age you can move it into safer investments before retirement.
Also super is a viable option but it does tie it up if you ever needed it or wanted to buy a house.
Go to a company called Australia Secure Capital. Getting 8.29% Paid monthly. The longer you leave it he more interest you get.
How secure is it?
It's in the name, therefore it must be very!
Issue with mortgage funds is that all interest is taxable, there is no share price growth, no franking credits and no capital gains discount.
I just chucked my latest $100k (i'm a contractor) into my dollarmites account I received as a child. I think it's called a Streamline now.
Buy 10 Eames chairs
Depends on your age/situation/whether you need immediate access to the funds and investment horizon.
Bank interest is terrible. If you're not going to touch it in the next 5-10 years, I'd suggest putting it in a managed fund.
Vanguard is fairly solid: https://www.vanguardinvestments.com.au/retail/ret/investment…
If you want to set and forget, look at the 'Vanguard Diversified High Growth Index Fund'.
If you're only after bank accounts:
- If you are not going to touch the cash often - RAMS
- If you will be withdrawing from it more than maybe once or twice a year - UBank
If you can afford a bit more risk consider investing the money such as with a Vanguard retail fund, that way it has the potential to grow a lot more than keeping it in a savings account. You want to make this money work for you.
I highly suggest you consider investing the cash, see a financial planner (but don't go to the Big 4 banks) for tailored advice.
- Any financial goal you are trying to achieve?
- Your risk appetite?
- Your current liabilities status?
- Willingness to actively manage your account?
If answer no to above questions, go for a term deposit. Which bank to set up a TD - depends if you want the highest rate available option or opt in the one with your current bank for the convenience.
Other kinds of investment requires some research/maintenance.
Thank you all for your advice
It has helped me a lot, some of the advice here I had no knowledge of so Thankyou xDepends on your age and financial situation. If you don’t need the money and are still early in your working career
- Buy the following books: millionaire next door, richest man in Babylon and “the only way to guarantee your fair share in the market” by bogle (founder of vanguard).
- 20k into an online savings account that’s accessible for future investments should anything crazy happen soon. E.g stock market crash and you want to buy in low low or even just have it as an emergency fund (unless you already have cash saved and then just Ignore this one).
- 30k into term deposits or some bonds
- 50k index fund like vanguard - read his book first and see if it’s for you. Obviously some bias but worth a read.
For what it’s worth I do the following..
50% index fund with vanguard, I chose an option with bonds
25% term deposits (which if you set up as 5 years or whatever and do this every year then eventually you have one maturing every year and can decide to reinvest it as a term deposit or use it if required.. hopefully the former option).
10% rate setter
Rest in savings for a rainy day or other investments.The key is to diversify. index funds are good for the market as it’s diversified ( you could choose one with bonds as well).
+1 for recommending reading materials.
Vanguard managed funds. One of the better investment decisions I have made.
Audi S3 investment car.
Cryptocurrency. I hear it's making millionaires.
Yeah but they started out as billionaires.
Buy some LICs: BKI, MLT, ARG, WHF
I have PM'd my bank details to you