Hey All,
I've got about $300k sitting in a 'high' interest savings account (measly 5%) which I think could be made better use of.
The interest is a pittance and I think it can be used for potentially better returns elsewhere.
A bit of background about myself. Mid 30s with house paid off in Sydney. Living abroad in SEA. Would like to discover different flows of income.
Please help me out with any ideas. Cheers
Yes I clearly don't know.
Well you seem to have trouble providing a simple answer to a simple question. What do you use Bitcoin for?
The silence is deafening…
@1st-Amendment: I told you, to increase my portfolio performance.
We generally agree that crypto is a waste of time. Where we differ is your understanding of Bitcoin. If Lyn Alden is too "crypto bro" (I can tell you didn't read their material at all) then I might suggest The Bitcoin Standard by Saifedean Amous.
to increase my portfolio performance.
So exactly how Ponzi schemes work then… Because that is exactly what Ponzi schemes do. There is no actual practical use other than gains from new money being put into the scheme.
Where we differ is your understanding of Bitcoin.
Yes. You are unaware that all crytpo is the exact same thing. It is laughable that you don't know this.
then I might suggest another crypto bro.
The plural of anecdote is not data.
@1st-Amendment: Sigh. We're still so early.
Bitcoin is different. It solves an important problem. You're embarrassing yourself, do some reading with an open mind, rather than preconceived notions. If anything, look at the history of money. Both books are largely about this, and you only need to read as much as that section to understand.
@orangecarpet-22: Regardless of opinion. Any 20 year old who skipped an Uber meal and coffee once a week and put $50 in BTC instead for the long term. Would be hard to argue against.
Bitcoin is different.
Repeating 'bItCoIn Is dIfFeRenT…bItCoIn Is dIfFeRenT' over and over like a bot is not data…
@1st-Amendment: If you are generally interested in the answer, I’ve shared some great resources for you to learn.
It’s a fascinating topic, the history of money, the current monetary regime, and what problem Bitcoin may be solving. I encourage you to investigate.
If you are generally interested in the answer
I know the answer, I'm just curious if you could provide some new information which you clearly can't. All crypto bros think exactly like you, we know the drill…
It’s a fascinating topic, the history of money, the current monetary regime
The fascinating thing is watching crypto bros finally learn the first thing about finance and suddenly think they are now the experts. Do you honestly think that you're the person to discover how money works?
and what problem Bitcoin may be solving.
'May' lol… and there you have it. It solves no problem, it has no use, it is purely speculation that requires new suckers to grow ie A Ponzi scheme.
But feel free to try and explain what YOU think it solves in your own words, if that is possible…
@1st-Amendment: Read those books because there’s almost everything you’d need to know. I can’t converse with someone who has educated themselves so little on a topic.
Read those books
Imagine not being able to describe in your own words what your 'investment' actually does…
How many Lambos you got now?
Buy High, Sell Low. Don't forget to FOMO. That's a W bro.
Load to horses this weekend
$100k in MEbank @ 5.55%
$100k in ING @ 5.50%
$100k (and above) in AMP Smart Saver @ 5.40%
Thats the best you'll get from high interest savings accounts. You will have to meet the requirements for the higher rates on each account type.
SQQQ
pr
TQQQ
depending on your view of the world
$300K Pfft
Have fun being poor
Wonder how much Dollar General has?
$301K
On Red
Go balanced fund style, half on red, rest on black.
On 00
brothels, strip clubs, drugs, and alcohol, and cigarettes are best.
you can gamble in the stock market, but big gains also could mean bigger losses. it just depends on your risk tolerance.
(Obligatory)
brothels, strip clubs, drugs, and alcohol, and cigarettes are best.
He's asking for investment ideas, not how to have a good time.
not how to have a good time
Isn't that the end goal of any investment? If you're already at the good time stage you may as well skip the middle man.
So invest it all in SVW?
In other words YOLO.
Username checks out
Senior bank bonds, as an example, CBA returning over 6.52%
I googled this, but where do you even start?
Generally you can only buy senior bank bonds through a third party asset management company (i.e., BNP, Citibank, etc).
Here is an example you may want to read about before you start.(abc.net.au)
That was a good example of why the ABC are a joke…
Invest in a G Wagon
300,000 Dong ?
Open a Dunkin' donuts franchise
OZB forums have gone down the gurgler for some years now.
I know where you can get higher returns. I will send you an account number.
Just use Ponzi as the reference…
is it the right time to ask for loan?
Transfer the money to SEA and invest it there as you won't need to pay the foreign resident tax rates in Aus
Depending on the country you are in e.g. Hong Kong, investment income is tax free
All in red, buy a property, then retire.
Do you have any Brothers or Sisters with a Mortgage, Park it in the offset there and help them out, you will be saving them about 21K per year tax free
Right thing to do but very risky
yep it depends who you trust and how close you are to them
And consider how close you will be and how much will trust if things don't work out. Nothing like financial drama to taint healthy relationships.
Crocodile skin diamond encrusted Hermes Birkin bag?
Absolutely no way any answer can be given on this until the OP specifies his risk appetite & investment period. Until then keep in the HISA and tread water above inflation.
Star City all on red.
Always bet on black.
You have come to the wrong place for sensible financial advice. Best go see a professional financial advisor for some advice you can actually rely on.
measly 5%? A couple of years ago it was just 1%.
I know a lot of investors who are currently actually locking in 20 year bonds with 5%.
Ignoring the retire early part - solid ideas here: https://www.reddit.com/r/fiaustralia/comments/10m5n7r/new_to…
Why do people automatically assume this is a troll post?
I'm genuinely seeking advice, as I've been away from Oz for a little while and just wanted to gather some ideas for further investing. Already receive rental income + interest of around $4k~ a month, so already have a pretty comfortable life here.
In terms of risk appetite, I would say its pretty low. Looking for something 'as safe as houses' as the old adage goes. Government bonds?
which country are you in? I could give ya some investment tips.
Because you've joined less than 24h ago, to specifically ask an investment related question on where to invest $300k… at a bargain website where deals of $5 or less are sometimes posted.
100% troll post. Flexing $300k at a site that has NOTHING to do with investment. Go ask for said advice at a financial based website, where likeminded people will tell you to invest in a 'high yield mocha-choco-bullshit investment'.
Which makes you posting here even more ridiculous than I thought!
K Bye, I'm going to join a Singapore based bargain site and ask for plumbing advice as my first post.
I'm only half joking when I say that if your first thought is to consult OzBargain instead of seeing a professional then you should not have $300k
Personally I think it would be dumb to ONLY see a professional. So many have a self interested agenda or misrepresent themselves. Either way there are gonna be sh!t financial advisers out there, lots of people are just crap at their jobs.
Financial advice is a regulated industry. The adviser has to be able to prove that they fully understand your personal situation, needs and risk appetite in making a recommendation. Whilst it's never going to be 100%, it's going to be alot better than relying on a bunch of randoms on a bargain forum (as much as I love this forum for it's intended purpose)
Yes, but as I said, ONLY relying on that 'professional' for information would be foolhardy. I wouldn't 'only' rely on a surgeon for medical advice, someone with way more qualification. Recently we saw the freaking RBA Governor handing out terrible advice. I've supervised CPA Accountants that I wouldn't let manage a lunch order.
Short term - leave where it is.
Long term - buy shares, even if market crashes, statistics to date show it fully recovers over time, also usually get a dividend income stream regardless.
Longer term on a higher income - live off it and salary sacrifice the maximum to superannuation through salary and invest in shares through your super account.
Longer Term - If you don't plan to be an owner occupier. Borrow and buy an acreage on a city fringe, rent it out and negative gear. Live in it briefly initially then every 7 years to stay exempt from capital gains tax.
they don't have a salary to sacrifice they have pure cash
why negative gear when you can positive gear
Fair enough. I find the real value in negative gearing is that you're also leveraging, better when interest rates lower but still viable. Sounds like Op may have minimal taxable income / income though.
places are hard to find but if you are able to get a loan or no loan required if you have cash and buy something that will be able to cover all your expense plus make a profit and also get capital gain = positive gear
is better than something that will make you a loss while you wait for capital gain to cover your losses = negative gear
in it to make money not to wait for capital gain to recoup losses
@Poor Ass: Positive gear is nice but. Real money in Real Estate comes from re-zoning. If I was in my 30's with the Million+ equity the OP seems to have.
I'd be researching train lines and looking for areas of future urban expansion / city commute when faster rail arrives. Then buy a farmhouse on a heap of acres just outside of town (not floodplain).
Maybe put half in high dividend shares for an income stream.
Actually I am planning something similar but fast rail is too long term for my situation.
@tonka: re: rezoning. not any more in Vic, the state govt takes a massive profit from the rezoning now on any sale.
Next ufc fight is April 27. Just bet on the lowest odds aka sure winner. Worked for me last ufc 300..go zhang weili!
that was bo nickal at 1.05
I did this on Wrestlemania - Cody Rhodes to win.
I'll DM you my bsb+account number
Property? Put half away and you can get something decent (good sized block) for around $750k with a 20% deposit. Some good options in Vic at that price range in up-and-coming suburbs.
If OP didn't even want to research other flows of income for their money, they sure ain't gonna do research on which suburbs to buy in lol
True that. But isn't expecting to be spoon-fed on the internet the Ozbargain way? 😂
90% SP500, 10% IBIT
ETF funds.
ASX code VAS. Pays reasonable div. Also franking credits, not sure if they are on any use to you living overseas.
VAS also has index funds of developing countries, think it's ASX code is VEU. No franking credits, I you Believe overseas markets likely to go up.
Also bank hybrid bonds paying 7.5% coupon including franking credits. WBCPK is an example.
All above a low risk, dividend options don't expect major capital gains
How to do buy Bank Hybrid bonds and how are they compared to ETFs in terms of risk vs divident?
If you have 300k, would you go for ETF or Bank Hybrid Bonds?
Bank hybrid bonds are on ASX. You buy them just like a share.
Commonwealth bank ASX code CBA then they add two letters to indicate a bond issue. So for example CBAPI.
These bonds have a component of fixed interest and RBA variable interest.
So for example CBAPI may have a variable interest of the BBSW of 4.25% plus fixed interest of 2.75% for total of 7% interest pa. Bond may have 5 years to run. Coupon is paid quarterly. That 7% interest includes franking credits. So you will receive less than 7% in coupon and to make up to 7% you will receive in franking credits. These hybrids have a face value bond of $100 but they may trade over or under $100 depending on depending on the fixed portion of the coupon. Theoretically if RBA lowers interest rates the value of these bonds should go up.
In my opinion these hybrids are marginally better than bank deposits, especially if you think interest rates will be going down.
Having said all that, if I was 30. I would prefer the vanguard ETF VAS.
But in your case not to sure if you can make use of franking credits.
If anyone has a formula on how to value a hybrid bonds, I would like to see it. I know how to value a bond, but since a hybrid bonds has a fixed and a variable portion, I'm not sure how I would value it.
I didn;t realise ETFs also give franking credits.
The vanguard ETF VAS (Vanguard Australian Shares) come with the franking credits from the shares. Vanguard VEU ETF does not have any franking credits as this ETF is overseas Shares.
So depends which ETF you hold as to whether they come with franking credits
aren't ETFs at risk of not being liquid (able to sell) in a market crash and not always owning the assets they represent (synthetic ETFs)? compared to say a traditional managed fund with the price listed daily. where the investor can initiate sell for that daily, or next day, price.
I don't believe the Vanguard ETFs are synthetic. Vanguard holds the actual shares in a trust.
I've heard the argument that in a market crash the ETFs will crash even harder. I'm not an expert in these matters. But I think I'll hold my VAS shares forever so I don't really care about market crashes, the price will recover after a crash in my opinion.
Cryptocurrency is the answer
Do you want more annual returns?
Do some research and pick one you like
A house in Victoria will never, ever depreciate.
Try Buying a house and selling it the next day or next 6 months and tell me whether you end up ahead
Correction = Most houses carefully selected won't depreciate over the long term.
"A house in Victoria will never, ever depreciate."
Incorrect. Just look at the 2010 graph (housing market going absolutely auction crazy with Rudd's first home grants) to 2012 (no one turning up to auctions as everyone was spent amongst other factors). Real sale prices deceased in average metro Melb suburbs by $100k (giving Vic example here).
Also at the very beginning of Covid, there were nervous sellers (some had to move back overseas) that sold quickly. Now, with crazy immigration levels at present, the clearance rate is a very poor 60%. There is market risk as others have pointed out, not to mention govt policies to tax home owners/investors to pay off soaring govt debt.
What about a 100k medium SUV?
What was the old post about the high yield investment car everyone talks about haha
Buy a block of land in the middle of no where.
Max out after tax salary sacrifice before next fy tax cut
If OP is living in SEA, then in theory there is no Australian taxable income to make concessional super contributions against. That doesn't stop them putting it in super as a non-concessional contribution. Benefit is 15% tax on earnings (compared to standard CGT rate, which would need to be considered in the country where OP is a tax resident). Negative is OP can't access the money for many years.
At mid-30's, if OP was to drop the $300K into super, in theory they wouldn't need to worry about retirement funding or further super contributions. Using rule of 72, if invested at about 8% return OP would have a super balance in the range of $2.5mm at 65. This of course assumes governments won't mess with super in the next 30 years…
So many rich people around, esp in OzB !!
It's the great country we live in. You can start with nothing, work hard and end up a millionaire.
Been working hard, waiting to be a millionaire now!!
Generational wealth. It will become even more pronounced as single child families become more common. There will be families that hold assets and those that don't (they used to be called serfs).
True that
@orangecarpet-22:
You do know that Bitcoin is crypto right?
You might want to do some research since you clearly don't know that Bitcoin is just a type of crypto. It says a lot that you are promoting something that you don't even know what it is.
That article was exactly what I expected. There are millions of similar stories from crypto bros making all the same lame excuses.
Here's a simple test for you to try at home, what do you use your Bitcoin for?
If it has no use, then what are you paying for?