First of all the money was given to me by my grandparents' since I'm finishing grade 12 this year and looking to get into uni next year.
Currently looking at ANZ term deposit which gives 2.6% p.a return over a 9 month term.
Looking at relatively low risk options since I just wanna put it away and not put much thought into it since I'm studying hard.
Thanks guys.
Bahahaha yes I know. I'm very grateful and am looking to handle it responsibly.
16 years and has "69" in username.
You are too young to have been born in 1969.
Your username should end in "02" or "03"
Obviously bad at math.
Uhmmm I'm sorry but "69" doesn't refer to my DOB. Bahahaha someone else explain… Bit immature I know.
Nice.
if you're getting many 69s with that face expression, more power to you
I can smell the virginity coming from your comment
Could've worded it a lot differently
Good plan. You might be able to get closer to 3%. Try your luck, talk to the bank manager and work on your negotiating skills :) Nothing to lose, be polite and firm, have some OzBargain fun. Tell them you made it hedging bitcoin.
( Good job on not being greedy. )
grade Year 12?
Grades end at 6. Just FYI.
It could an old habit from when they lived overseas.
Damn. Have to say, as much as I'm jealous you're getting 50 grand, seems like they made the right decision if your first instinct is where you can park it to earn the most interest (instead of blowing it on stuff like I would've done at that age).
Thanks. Was nervous that I was gonna get pummeled by ozbargainers when posting.
Your parents letting you do whatever with it ?
Yeah they trust my decision making. They're firm believers in letting children be independent.
Letting them be independent by giving them $50k? LOL.
Good work kiddo - punt it in a term deposit
Put*
lol at punt, don't know if that's deliberate or accidental….
I smell rich grandparents spoiling grand kids heh
Yep and I hope I can do the same for my kids/grandchildren one day.
Where do you live?
If not in the major cities, I would say buy a house (check the housing prices to see if they are in decline or not.
I bought a house for 148k that's giving me $180 a week rent near a university.
I am not qualified to talk about investing in shares or bonds, but you might want to check out companies with solid growth where you can track their buying/making of goods, to make proven sell-able products.
In my view, I think the OP should concentrate fully on his university studies. The $30-40k or whatever rent minus costs is piddling compared to the consequences of doing well at university, getting a solid job and being motivated during your young years. He's 16.
UBank saver offers 2.87%, there’s a bit of fiddling around with auto sweep and a minimum deposit of $200/m to get that rate. I personally reckon it’s easier than ING because there’s no payWave requirement.
You are wise beyond your years, ask yourself what your needs and wants are, what do you need the money for right now, what would you need the money for immediately/short term/medium term/long term. Then make a plan for each, and how to reach those goals. 50k is a very large leg up especially at your age.
The term deposit rate 2.6% pa doesn't look so attractive in light of the inflation rate of 1.8%.
This. You’re 16. Invest it in some sort of ETF which is properly diversified. You have time to invest and ride out the down times. Invest it for the longer term and take a higher return. Term deposits barely keeping up with inflation are for those who can’t handle loss of capital or any risk.
$25k on black then spend the winnings on hookers and cocaine.
Do you need to be 18 to open an account? I know some savings/term you do but not sure about all of them. You may need to put it in your parents name if that's the case.
Or ask your grandparents to open an account and leave it in their name so you don't have to pay interest at tax time, if they're not working that is.
Bahahaha
Bahahaha
Maybe invest in sheep. You seem to like them.
Here are some tips on how to start…
40k Td
9k shares
1k cocaine and strippers
'+ this
$35k (term deposits/ investments - "don't touch me money").
$10k high interests savings to cover necessary expenses (and to show grandparents you bought something useful with money):
- First Car
- Laptop for Uni
$5k for play money budgeted over Uni life (travelling etc).
Last but not least take your grandparents out for lunch now and then.
give it me, ill invest it for you
You're 16 and it's "free" money.
The term deposit, while safe and sensible will barely outrun inflation.
If I had $50k when I was 16 I'd invest $15k-$25k into something like a Vanguard Index fund with an initial $3k and then a regular weekly investment of $100.
I'd also set up a low cost share trading account and do another $15k-$25k in shares.
The Big 4 banks seem to be teflon coated and are returning 7%+. You'd do better buying ANZ shares than getting their term deposit.
Gowings is at a 2 yr low but has always paid a dividend.
Wesfarmers seems to have got its act together again.
WAM Global for some overseas exposure and is down 10%+ on the issue price.
Capral Aluminium appears to have some great figures but nobody loves them.
Cochlear are well managed and will always look expensive but seem to keep growing.
W H Soul Pattinson are nicely diversified (but look expensive at the moment to me).
Flight Centre are low but volatile over 3-6 month periods.
Lots of other interesting, well run companies out there.
Don't buy individual shares. Research low-cost index funds and ETFs. They don't require much thought and give you an instantly diversified portfolio. You are quite lucky to have that much capital so young. Learn about compound interest and see that time is on your side. As hard as it may seem, you should think long term investments, at least a decade - with a 7% ROI p.a., about average long term stock market performance, your initial capital will double after 10 years. The earlier you start, the better - good luck!
Haven't seen it mentioned, so be aware of the tax rate for under 18s - can be something like 66% I believe, but can't recall in what circumstances.
Might like to look at something like an insurance bond for a tax effective, long-term option (at least for some of the money).
V bucks
term deposits are awful, go see a financial planner, the fee will be recouped a thousand times over
You have a golden opportunity, with a lump sum at this age, to take advantage of compounding. Don't do a term deposit, you'll make effectively nothing after inflation as others have said. Low cost index funds are the way to go. For e.g. at average historical market returns, that 50k would be worth over a million when you're 60. It would be worth about 150k if you left it in a term deposit.
Are all types of index funds compounding? Can’t seem to find anything on them.
If they offer a dividend reinvestment plan (DRP) they will. It means any dividend they pay will automatically be used to buy more of their shares. Should be stated somewhere in their site or PDS.
Look at vanguards exchange traded fund products: https://www.vanguardinvestments.com.au/adviser/common/html/m….
Particularly VAS (tracks the performance of the Aussie share market as a whole, minus a tiny fee) and VGAD (an international option). But have a look at the options for yourself. There's plenty.
Keys are: low fee (ideally less than 0.4%) and following a stock market index, rather than using a manager to actively pick stocks. History shows active managers almost never beat indexes. Also, reinvest any returns back into the ETF you've chosen. And voila, almost no work, waaaay wealthier.
Hookers and coke
Invest in a high yield car
Get a part time gig, convince your folks to be your guarantor and find a cheapish property then rent it out? Might need a few dollars hanging about just in case the tenants call for anything.
troll post. Same dude looking into buying a 110k car
Grandparents gave him 50k, then a week later they both died and left a lot more.
I'd be asking how to hide the evidence of foul play.
Invest in Nearmap shares
https://www.canstar.com.au/compare/term-deposits/?amount=%24…
Looks like a couple of other banks are offering more than 2.3%.
Though you may want to research which banks to go with since some banks dont take TD from a 16yo.
? Use for deposit on cheap unit/flat, where rent can cover all expenses.
In 10-15 years you may own a $250,000 (as example) property outright, without too much effort.
This comment wins.
Etfs
I would look for monthly interest
Age is on your side. Make use of it.
If you start with $50k and then invest $700 monthlyGet 8:00% return then you would have 1 million at the age of 41. If you can invest more than you achieve this number much quicker.
Breakdown :
initial deposit: $50,000
Regular deposits: $210,000
Total interest: $772,727
Total savings: $1,032,727
You left out the paragraph after “get 8% return” where you actually reveal how to get 8% return
I think any good index fund would return 8% per annum easily in the long term.
for example :
Vanguard Australian Shares Index ETF (VAS) has returned around 10% yearly since its inception in 2009.
Cheap brokerage, Vanguard ETFs…
15k VGB (dividend reinvestment)
15k VAS (dividend reinvestment)
15k VTS - Dividends = pocket money.
5k to travel and get some life skills and experience while you're young.
Depends on length of time. Check out Lincoln indicators managed fund. It's returning 15% p.a. Thing is with stocks, it's long term (5 years minimum) as you may invest at a top. I'm with their stock doctor service and very happy.
Good luck.
Either red or black.
VANGUARDS
There's plenty of good advice here, but being that you're young, you can take this chance to start studying the market too. You can check for yourself what everyone else is investing in, zero in on your interests or the products that you use, keep up with the current world and local news, and know when to take risks, and more on this article from TheStockDork. Good luck!
If you park it in a term deposit thats 1 year locked in you can split it into parts
ie put a quarter that you can get access to in 3 months 6 months 9 months and a year
if you do this you will always have access to some of the cash if needed each quarter
$40k VDHG
$5k emergency fund
$5k travel, drugs, hookers, whatever you want
This is not financial advice blah blah
Term nearly complete.
What to do with your $51,300?
You lucky little fkr