I've Googled, I've searched through these forums, I can't find a straight answer. I'm after max safety. I'm guess fixed term deposit? But the interest rates seem very low, like barely worth my time. Any suggestions?
How Should I Invest $50K over 5 Years?
addison666 on 19/09/2021 - 14:01
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It's his PPOR, there shouldn't be any CGT.
This sounds like a terrible plan.
Keep the house
See if you can remortgage to cover the personal loan?A house of say $400k will probably be worth $500k in 5 years, you've got $100000 profit
What town are you in? People are moving country at the moment, you should rent the house out and take advantage of the depressed rental market in the cities
It's much easier to make a profit on $400,000 then it is on $50,000
You havent taken stamp duty into account. Sell (agents fees), buy (stamp duty), sell (agents fees), buy again (stamp duty) is going to cost you a bucketload of money. Easily more than the $50k. I would recommend you at least rent the place out for a year while renting in the city to be sure you like it there first!
Also, the statement 'when prices drop again' should be rewritten to 'if prices drop again'…
Never sell. Because you lived in the house you have 7 years of capital gain that is tax free, plus the dead money of stamp duty etc to rebuy, if you can. Move into a share accommodation somewhere fun. Maybe an owner occupier renting a room out. Find one where all bills are included. You just have the responsibility of keeping the room up and no worry about leases maint bills etc.
'I was going to selel my house (make about $80k profit), pay off my personal loan ($20k), and all the other costs for selling. Hopefully have about $50k left over, Invest that for 5 years, when the prices drop again move back into the country.'
BAD idea - 2 transaction costs of selling and buying will probably leave you unable to buy a house in a) the city, and b) the country when you return.
better to find a cheap place to rent in the city, turn your country home into a rental (ask 3 local agents for suggestions) and if you want to buy in the city, then use the equity in your country home to make it easier to buy a second place.
cashing out your home is usually a bad idea and you sound too young to know just how bad your idea is - cash is easy to fritter, and it's much harder to buy in the city when you've sold a country property.
many retirees who sold their city place for a seachange home got bored, didn't like it, tried to sell and buy back into the city and found prices had not only risen beyond what they could afford, but no longer employed people can probably not get a loan to buy - so they're screwed and can end up homeless unable to afford rents in retirement.
Get much more advice from experienced people before you even think of selling your home.
I sold an investment property in the dip last year, and now I'm only - oh - probably about $450,000 worse off than I would have been if I had kept it.
So beware.
Total Returns over the last 10 Years…
Bitcoin $BTC: +994,608%
Tesla $TSLA: +15,200%
NVIDIA $NVDA: +6,053%
Netflix $NFLX: +2,337%
Amazon $AMZN: +1,427%
Microsoft $MSFT: +1,280%
Apple $AAPL: +1,112%
Google $GOOGL: +937%
S&P 500 $SPY: +344%
Bonds $AGG: +35%
Gold $GLD: -6%Next 10?
If you hold it in cash/fiat you need professional financial advice. inflation will make an L out of you.
Good comparison, bank term deposits would be well into negative territory too, once you factor in inflation.
Bitcoin is stagnating now that there are so many other solid cryptocurrencies competing with it.
Tesla have had a brilliant run, but in the medium term on shaky ground, as the government supports start to get removed, making the company less profitable, they will also soon face a lot of competition in the US from Ford's EV range amongst other manufacturers.
Netflix is similar, starting in a streaming market with virtually no competition, it's future could be interesting, but most likely I see it getting bought out by a bigger player like Amazon or Google or Microsoft, who only have a paltry library.
We need an index fund of crypto currencies then
BREAKING 💥 A second #Bitcoin ETF will now also list in Australia next week 💥
https://twitter.com/BitcoinMagazine/status/15167308005695692…
uh - you failed to list all the shares that went down the toilet
you know the trick for why the ASX looks to average impressive returns?
because they REMOVE failing companies from the listings, and replace them with shares that are doing well !
so people who bought shares in the companies that went down the toilet can lose all their D'Oh !
Lotto winnings look great when you only count the winner. 1,000,000% return!
yeah - with a 1 in 10,000,000 chance of winning $1M
so that's like - for your $10 investment (every week?) - like a 1 in 10 chance of winning $1 ?
wowza.
@paradise: 'have fun staying poor'
not sure who you meant there - but it ain't me - I'm retired with way more than enough
if you were attempting oneupmanship - it failed.
and if you were suggesting that lotto tickets were a recommended investment - uh oh …
@Hangryuman: you are time poor, your time is nearly up.
it's a saying in the crypto world, evidently, something you have near zero knowledge about but keep talking.
$NFLX
rekt 😆
ETFS. 8%pa over 5-10 years
YOLO everything in crypto and either go to the moon or crash to hell, or not much happens at all.
I would invest in Solana and hope for financial freedom in 5 year's time. $50K compared to a life time's earning is probably not much. I'd take the risk, not sure about you.
I was curious in running these numbers so here you go:
-The more common, conservative financial freedom number used is $2.8m.
-For this to grow out of a 50k investment it will need to have inflated 56x
-Current trading price of SOL is 1,131aud
-Solana have announced there will be 489m coins released.
-If all these coins inflate by 56x, the total value will be $31trillion.For comparison, there is currently $36trillion in total currency of any kind on the planet haha.
"The Best Time To Invest Was Yesterday or 10 years ago, The Second Best Time Is Today"
I'll put my money 50% on VAS and 50% on VTS
Here’s what I would recommend
12k VDHG (sharemarket ETF)
8k UST on Anchor at 19.5% (USD stablecoin)
8k TAUD on Crypto.com at 10% (AUD Stablecoin)
8k USDC on Yield.App at 10+10% (USD Stablecoin)
8k TAUD on Celsius at 8.8% (AUD Stablecoin)
6k in Crypto (2k BTC, 2k ETH, 2k speculate)Understand what your are in investing in before putting any money in. Stablecoin funds are a relatively safe way of earning a higher level of interest, however there are still plenty of risks involved.
Personally I think your plan is bad though. Id be keeping the house, selling an asset worth 400k that is appreciating around 5-10% per year is like 20-40k per year. Your not gonna get that level of yield safely on 50k savings. Also it’s pretty hard to find a rental atm, at least where I am. You want low risk? The riskiest part IMO is your plan to sell and hope to find a rental in the city.
Good luck!
VDHG yuck
Yep. So glad I wasn't stupid enough to buy into that bullshit of a fund.
It's like a cult, what a joke.ASX is a joke only recently gone back up above GFC levels while US are killing it
Do what Buffett says and put ya money in S&P 500 if you are an investment retar
Vanguard is good not dissing just VDHG is not
@Poor Ass: 100% agree ^
I have a lot in VGS and it's kicking ass!
Got some VAS too, half as good as VGS and more (profanity) dividends (bigger tax bill now).
But at least I'm not in VDHG. Too much of that is wasted on bonds and other useless shit.
I don't get why everyone recommends that 20 year olds buy VDHG. Too overweight in Australian shares and bonds/cash (why would you want that at age 20?)@idonotknowwhy: Ya just because we are in Aus doesn't mean we have to put everything in the ASX. I sold out most of ASX shares since it was going no where after GFC
If ya young go for high risk but reputable stuff like ETHI, IVV, IOO, FANG all reputable stuff that everyone knows the companies
They really should have financial education at school it doesn't exist
@Poor Ass: S&P 500 went down today after I read US news that more shares in the S&P 500 are going down than going up - a correction (down 10%?) is expected
so a great year of returns of 25% or whatever is no guarantee that next year is going to be the same
when I was younger, the first time I bought shares that had risen hugely, they promptly went down the toilet - I think lost like 40% of my investment
relying on past performance may predict a future FUBAR for you !
@Hangryuman: only way you would lose on S&P 500 is if you ran out of time. how much time do you have?
the stock market has never went backwards in the long term
not sure how old you are but there are ETFs and index funds these days which reduces risk and sounds like you bought couple of single stocks? what did you buy? Babcock and Brown?
you only lose if you sell and maybe you had to sell but what the market want is less weak hands
@Poor Ass: 'only way you would lose on S&P 500 is if you ran out of time. how much time do you have?'
Economist John Maynard Keynes said in the 1930s: “Markets can stay irrational longer than you can stay solvent.”
S&P 500 went down today after I read US news that more shares in the S&P 500 are going down than going up - a correction (down 10%?) is expected
The SPX is closed.
@rektrading: 'The SPX is closed'
thanks - I am aware of the 14 hour time difference between AEST and US EST - or Sydney and NYC
when I wrote 'S&P 500' I was thinking of Australian ETFs like IVV that follow the S&P 500
crypto <> max safety. you didnt read OP's brief
long term investment for max safety is a good quality, low fee ETF generating 7 - 10% return annually
Cash is guaranteed to lose value over the next 5 years. The only reason why you'd want to own cash is to buy assets when/if they dip
The catch is that many other 'safe' investments could fall even faster. Silver is down 17% YoY. Gold is -10%.
Crypto can do very well if you avoid theft/fraud, the exchange hacks, exchange 'hacks', and rugpulls.
Liquidity farming stablecoins is the best solution imo
Or to 'not' hold asset when they dip.
Or to hide it from the feds from assets tests.
Fiat money is backed by the government and is the safest asset to hold.
My cash is 100% in fiat money. I sleep better at night knowing that the government can lock up anyone for years if they try and mess with it.
Why isn't anyone recommending fiat money?
Coz it's a joke
Cause they can print more cash?
ASX: COL, select DRP & see you in 2026.
DYOR
Pretty bad choice
more of a woollies fan?
nah mate it's just naming 1 stock and putting all money there is not the way
i mean if you are wanting consumer staples IXI would be better but just COL come on…. down down share prices are down
Hold onto your cash. Evergrande might knock everyone’s teeth out if the CCP don’t bail them out.
hodl fiat… lol~
Evo 9
'I'm after max safety'
reminds me of a friend who asked me to recommend a super fund investment choice - she was thinking Cash 'for safety'
I showed her this https://aware.com.au/member/investments-and-performance/retu… comparing e.g. Cash had grown maybe 1.68%pa over the last 5 years, while my High Growth had grown 12.53%pa over 5 years
a difference of 10.85%pa - what difference might that make to your $50K ?
Well - the rule of 72 for doubling suggests that 10%pa difference means double your money in 7.2 years.
So - cash at 1.68%pa for 5 years would have grown x1.087 and turned your $50K into $54K
High Growth at 12.53% for 5 years would have grown x1.803 and turned your $50K into $90K
Which one would make you feel safer … ?
As she was younger and decades before retirement, she got my point and went 'Oh - OK - High Growth then!'
lol "I can't find a straight answer" that's because there isn't one. Max safety = Boring
'Max safety = Boring'
stories of people not trusting banks so keeping their life savings in cash under the mattress
until robbers know that culture, and break in and steal the lot,
or one story of old lady found unconscious taken to hospital, daughter decides to treat her to a new mattress as a surprise, on her return old lady is 'WHERES MY LIFE SAVINGS !?!?!?!!' - invoking panicked search of rubbish dump - to no avail …
so yeah - cash tends to go backwards after inflation - and is so easy to lose, steal, or spend
money talks - and cash usually says 'Goodbye!'
how old are you?
The entertainment is in everyone recommending crypto and shares as "max safety"
Get your fiat bags ready.
China is tanking the global market in 3, 2, 1, cliff.
China is tanking the global market in 3, 2, 1, cliff.
Just an excuse. Given China is very much closed to foreign investment it would only tank the Chinese internal economy. Plus those who can short sell (or put options) would be making a killing.
The CCP looks after the CCP. Capitalism is for them to build up China to be strong (unlike the USSR), now the CCP is whipping Chinese companies (to satisfy the masses).
Even if Evergrande doesn't get bailed out the CCP will bail out the suppliers / customers one way or another. There isn't a political opposition or accountability.
I have high hopes that the bad debt from this shakeout will have a knock-on effect that will send all markets down. Not down to the Covid crash (which was a great time to buy) but enough for other people to get some bargains.
The fear index went from 50 to 27 in less than 24 hours. Everything on my screens is red right now. People are 💩 scared and they should be. They should sell everything because it will go lower than they expect it to go.
People are 💩 scared and they should be. They should sell everything because it will go lower than they expect it to go.
Which people? If you are a retail investor you'd be going to your day job and won't be on the screen trying to flog off your shares for what you can get for them.
Most of the whales would be already set with shorts / puts (out of reach to retail investors). It would come out someone is over leveraged and probably got caught at wrong end of the trade.
For most retail investors time to up their regular investment instalments and get in there.
@netjock: Retail traders use apps on their smartphones to trade. They can trade any time while at work.
These types of traders are glued to their phones and are pressing the SELL button right now. Those that haven't will when they see the massive red bars.
https://files.ozbargain.com.au/upload/393946/91321/screensho…There is more pain to come.
Retail traders use apps on their smartphones to trade. They can trade any time while at work.
That sounds like description of a gambler.
Size of most retail portfolios are small. Robinhood (US) average account size is US$3,500. Forbes
Even if they all dumped it wouldn't cause this kind of panic.
@rektrading: Mate, if I caught any of my staff trading stocks on their phone while at work a warning is coming their way.
@Blargman2001: Do you follow your workers when they have a toilet, smoking, or coffee break?
It takes 30 sec to put in a trade which can be done during their break time.
@rektrading: Usage of electronic devices for personal reasons at work is something that is tolerated by employers. You mention it like it's everyone's right to trade shares at work. Talk about entitled. I've had employees who "trade" at work. They don't "take 30 seconds". They research, respond to alerts, read the news etc. Massive time wasters. To quote you "they're glued to their phones". Not exactly a productive employee, seems like the type that deserve a warning.
@Blargman2001: It can go both ways though. I've been tolerating the use of my personal phone for work use for many years now.
Buy a toy Poodle (male) and a cavalier(female) ( or 9) and some Barry White music.
Sire out the poodle and breed them.
People pay stupid money for puppies atm
drugs and prostitutes….. anything left after 5 years….. then just waste whats left.
As others have said, don't sell the house. Rent it out. Not only do you get in on the best tax dodge ever in the world, but the government is showing no signs of closing any tax benefits of rental properties.
Otherwise i'd be looking at the world of managed funds and ETFs. I get very good returns on my managed fund. The risk is still very low.
Cryptos to quote many accountants and finacial advisors is really gambling into a pyramid scheme. Get in and out before it collapses. The technology is sound and will be used in the future, but thats not what you invest in. The next GFC will be around cryptocurrencies crashing.
'looking at the world of managed funds and ETFs'
an ETF I bought less than a month ago is down 3.5% since then
two other ETFs I bought a year ago are up 19% and 28% since
so on average - happy
reminds me of Homer Simpson trapped by a block of ice on his legs with his head on fire - 'on average - comfortable!'
so yeah - you can spread your manure around to fertilise a wider area and reduce the stink -
or it may have been Churchill who said 'put all your eggs in one basket, then watch that basket VERY CAREFULLY'
the difference between gambling and investing is the time you wait for your asset to mature
'wait for your asset to mature'
as first glance that looked to me like 'your ass to manure' -
which in the end I guess we all become
don't like to wait ?
“The stock market is a device for transferring money from the impatient to the patient” - Warren Buffett
Can I ask which ones did you buy & why did you choose each one?
The 2008 GFC was US banks playing games with bad debt.
The next GFC will be banks playing around with bad debt and the GFC after that will also be banks playing with bad debt.
This is what the world gets for letting banks lend out money they don't have to borrowers that can't pay. Everyone that is part of this circus deserves what's coming.
China just fired the first shot on Monday which means the house of cards could start to fold in the coming weeks or months.
Anyone that has some cash on the side should get ready to buy when the market hits the floor.
China is a communist country when push comes to shove the CCP can't take away all private assets of its citizens home and abroad to bail in. The house of cards won't fall.
That is the difference to democratic countries with rule of law and some transparency.
Nothing to see. China with do anything to save face. This is the CCP teaching their billionaires who is boss. It is like what Putin did to Mikhail Borisovich Khodorkovsky.
'I'm after max safety'
make sure you've got max headroom - https://www.youtube.com/watch?v=6epzmRZk6UU
CFDs
VAS and VGS is my main mix
minor holdings in
ASIA but recently took a belting, thanks to big boi XJP
OPH for small/mid capLooking to diversify into property reits, and small punt on medical cancer research
Have you considered a high yield investment like a fancy European car? Ignore this suggestion if you happen to not work at Westpac.
If it were me, I would DCA a fraction of it into Cardano on a weekly basis (ie: not putting it all in at the same time) while staking it (atm is about 5-8% annual returns).
Vanguard.
You're welcome.
sell deep ITM SPY/ASX200 puts
Buy a classic car.
Or bike or guitar or book etc. The collectables market seems way ahead of many mainstream investment. I actually think guitars are worth a look, low cost maintenance & storage, sell later no-ones tracking them for cgt and make nice display pieces in the meantime.
I have many guitars, they aren't gonna sell for what they're worth anytime soon. All of them are sought after/rare etc. Not a good market to be in at all, they're just toys for big bois.
Same bs with cars, so many variables you can't account for, not worth it for 99% of people.
I've seen collectable guitars going up in value 500+% in the last 10 years. Better than property and just as easy to sell (without as much hassle or tax). Cars that were worth $5-15K 10 years ago are worth $50K+ today etc, and you get the bonus of having a big boi toy. And yes sure many variables but stocks crash big time and all we've heard about property forever is bubbles and bubbles. It's not whether you are selling the guitar for what you think it's worth, it's whether if you sold it for the market price you made a good return on investment over time.
Evergrande stock is pretty cheap atm.
Pick a good ETF like Vanguard and don't look at it for 5 years. If you can wait a little look for a market correction and then buy in when others are fearful but hold for the long term.
500g cast bar gold
VTS
112% growth in the past 5 years
Your $50k would turn into $110k.
Invest in the stock market.
Pick a share like Flight center, Qantas, Sydney airport, which is gonna recover very fast in a couple of months as Australian and the world travel resumes.
Have you considered a Managed Share Fund?
https://moneysmart.gov.au/managed-funds-and-etfs/choosing-a-…
When you invest in a managed fund, your money is pooled together with other investors. A fund manager then buys and sells assets, such as shares or bonds, on your behalf.
This can be a good option for smallish investments in the medium to long term, you typically choose a risk/growth profile that you feel comfortable with and are less exposed than choosing your own investments.
Checkout the MoneySmart website for good information on lots of financial matters.
Why don't you send the money to an overseas bank account which provides a better interest rate.. ?
Turkish banks pay 18% APY. Think of all the gains.
I currently use my Indian bank account for 4% APY..
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Have you accounted for tax on the 80K profit? Or is the 80K profit after tax?