How Would You Invest a Lump Sum up to $200,000?

LAzzDawg on 24/05/2024 - 09:16
Last edited 24/05/2024 - 12:01 by 1 other user

If you had $200,000, how would you invest it?

Please also provide an explanation as to why your answer is the best option in your opinion.

Edit: thanks for the input everyone, you've certainly given be some things to read up on and consider. Some have said my post lacks detail on goals etc so here goes.

Money is from selling property. At some stage (likely in the next year) I'm looking to get back in, unsure when and where at this stage but obviously will need access when this time comes.

Goals:
Maximum returns.
Minimal risk.
Safety (considering sky rocketing inflation, is the market going to crash?).
Accessible when the time comes for me to re-enter property market.

Financial Investment

Comments

  • Hybroid on 24/05/2024 - 09:18
    +2

    https://www.ozbargain.com.au/node/847207

    https://www.anz.com.au/plus/interest-fees/

    or similar ~5% savings account.

    • Jimothy Wongingtons on 24/05/2024 - 09:21
      +1

      Definitely the sane thing to do or vdhg/vas and just sit on it some years

      • SoapyWooder on 24/05/2024 - 19:25
        +6

        VGS

      • Worf on 26/05/2024 - 08:37
        +1

        Anyone holding VHY?

        • mrvaluepack on 26/05/2024 - 17:08
          -1

          Thats a loser's etf lol

          • Worf on 27/05/2024 - 06:37
            -1

            @mrvaluepack: What’s your rationale?

            • mrvaluepack on 27/05/2024 - 06:42
              +1

              @Worf: -comparing total returns, its lagging behind VAS
              -you will pay more tax because of higher distributions
              -studies have shown that dividend distributions are NOT one of the factors affecting investor returns. Examples of actual effective factors are momentum, value, size, etc.
              -higher fees and smaller number of holdings.

              • Worf on 27/05/2024 - 09:33
                -1

                @mrvaluepack: Interesting, thanks. What’s your read on the healthcare sector, getting hammered (RHC, SHL, HLS, CSL, etc…) what’s your take on risk:reward?

          • RTX9090Ti on 27/05/2024 - 12:57
            -1

            @mrvaluepack: LOL.

      • WillKillfor5Cents on 27/05/2024 - 15:15
        -1

        1/3 DHHF/VDHG
        1/3 QUAL
        1/6 BGBL
        1/6 A200

        NFA DYOR

    • HeWhoKnows on 25/05/2024 - 08:45
      +1

      That was the strategy last year whilst waiting for property to come down but it didnt!
      Hence you will get left way behind with cash.
      Rents and property are going through the roof!

  • Baysew on 24/05/2024 - 09:22
    +8

    Carefully, whilst considering my personal objectives, financial situation or particular needs.

    • HeWhoKnows on 25/05/2024 - 08:44
      +1

      In that case, use the money to put a deposit down on a property.
      Property and rents are going up, up and up!

      Suits everyone's agenda

    • RTX9090Ti on 27/05/2024 - 12:59
      +1

      No high yield investment car advice?

  • Fredfloresjr on 24/05/2024 - 09:25
    +15

    Horse races this Saturday.

  • 87percent on 24/05/2024 - 09:25
    +2

    NVIDIA shares

    • Jimothy Wongingtons on 24/05/2024 - 09:47
      +1

      Did you see that reddit post too?

    • May4th on 24/05/2024 - 09:56
      +1

      oof sold earlier this year at 480. thankfully not all of it

      • Jimothy Wongingtons on 24/05/2024 - 10:08
        +3

        at least you didnt sell at 50 like that guy on reddit, would be worth like 2 mill usd today (i guess woulda had to really gamble on that 8-9 year hold though)

        • DingoBilly on 24/05/2024 - 11:23
          +5

          Yeah it's easy with foresight. At that stage though you may as well have wished to have held bitcoin - your profits would have been way more, but it's always a gamble. NVIDIA could have gone to 0 by now as well.

          • May4th on 24/05/2024 - 11:27
            +2

            @DingoBilly: win some lose some that's investment for you. also good take profits and hedge so you don't end up holding all the bags. when I sold I covered all my cost base and some so whatever's left is bonus

          • Jimothy Wongingtons on 24/05/2024 - 11:31

            @DingoBilly: Yeah I woulda sold out at same point anyway, can’t blame him. I think that dude on reddit bought in at low 10s, so selling at 50 woulda felt bloody unreal I bet at the time

            • May4th on 24/05/2024 - 11:32
              +3

              @Jimothy Wongingtons: can't be worse than the guy who has 200m of bitcoin in a hard drive in a landfill somewhere who is still trying to get council to dig it up

              • Jimothy Wongingtons on 24/05/2024 - 11:49
                +2

                @May4th: Oooh yeah I was thinking pizza for Bitcoin dude would be spewing… I’m surprised harddrive guy is taking it so well..

                • May4th on 24/05/2024 - 11:58
                  +3

                  @Jimothy Wongingtons: respect for the guy he is still at it and teaming up with all sorts of people to fight the council instead of sulking in his parent's basement

            • RTX9090Ti on 26/05/2024 - 10:05

              @Jimothy Wongingtons: You would have sell yours if it makes $500 profit.

    • Ruddaga on 24/05/2024 - 18:02
      -1

      Crap thing is I was literally eyeing it off when it was 100 and thought nah too steep.

      Kicking myself now D:

  • elgrande on 24/05/2024 - 09:42
    +10

    I use an app that automatically saves my loose change. I assume the 200k is change from this mornings coffee?

    • Jimothy Wongingtons on 24/05/2024 - 10:12
      +11

      coffee, smashed avo toast, petrol fill ups, random 10-20c coins found at the mens urinals etc

      • elgrande on 24/05/2024 - 10:15
        +13

        20c coins found at the mens urinals

        The trick is to urinate on the coin yourself before picking it up to wash it off.

  • cashless on 24/05/2024 - 09:53
    +5

    Today's humble brag troll post.
    But seriously, if you need instant access to your cash, then this..
    ….which Hybroid has already stated…..

    • AzzDawg on 24/05/2024 - 11:48

      No humble brag.
      History shows I'm not great with handling money and want to do better but get confused quickly when looking into this type of thing.

      • samyall on 24/05/2024 - 11:58
        +1

        You need to tell us what you want to do with your money in the future. Do you want to spend it in the next 5 years? Is it for retirement? Do you own a home etc.

        Otherwise the best advice is probably a high interest saver.

        • AzzDawg on 27/05/2024 - 08:22

          Sorry, I just have scanned over your comment the other day.

          Planning to buy back into property market in the next year or so when I find the right one so I will need to have access.

          • samyall on 27/05/2024 - 08:32

            @AzzDawg: Given the short timescale I'd say that parking it in a high-interest saver or a term deposit if you want the extra barrier to touching it is your best bet.

  • theHMASfriendship on 24/05/2024 - 09:54

    Magic beans

    • cashless on 24/05/2024 - 09:56

      Magic Mushrooms

      • 0806449 on 25/05/2024 - 11:53

        Clarkson's Farm

  • Timbercote on 24/05/2024 - 09:58

    Free advice often turns out to be expensive. If you’re sitting on $200,000 and you don’t have the time to investigate, see a financial advisor.

    • Ocker on 24/05/2024 - 10:04
      +2

      Its the old adage "free advice is worth exactly what you pay for it - sfa"

    • barratttc on 25/05/2024 - 09:07
      +6

      How many dodgy "financial planners" out there?

  • dust on 24/05/2024 - 10:00
    +6

    Offset account if you have a mortgage. Otherwise VDHG or DHHF.

    • adn on 25/05/2024 - 08:57
      +1

      Don't know why you getting voted down but these are good options.

  • seraphim2017 on 24/05/2024 - 10:01
    -1

    Would be interested to see if ETF is the recommendation, curious about balance of access v reward for ETF over highest interest account, capital gain impact and liquidity and robustness.

    What is the NVIDIA thing? Is it going up again?! I thought it was high before, looks like missed the boat on that one! Should have sold the Webull free tesla shares at $230 and bought nvidia!

  • Dollar General on 24/05/2024 - 10:07
    -7

    I would invest around $1,000 in a good financial planner & the remaining in what we agree upon

    • DingoBilly on 24/05/2024 - 11:24
      +3

      $1,000 probably won't get you a good financial planner unfortunately. The ones that are highly recommended are about $3-4k in my experience.

    • payless69 on 24/05/2024 - 12:38
      +10

      All they do is sell the products that pay them the largest kickbacks and consequently have the poorest returns.

    • knasty on 24/05/2024 - 17:42
      -1

      A financial planner needs to prepare a statement of advice. You'd be lucky to get anything under 3k from what I've seen; there is so much compliance involved it's not worth their while for anything less.

  • Austin 316 on 24/05/2024 - 10:10
    +5

    Put it all on BLACK!

    • stuffandthat on 24/05/2024 - 10:17
      -1

      Put half on black and half on red!

      • Pufff on 24/05/2024 - 17:10
        +1

        … 0

        • bcYield on 25/05/2024 - 20:23
          -2

          Someone said he has the numbers

    • Jimothy Wongingtons on 24/05/2024 - 10:42
      -1

      Roulette and just keep doubling down till ya win

      • Some Guy on 27/05/2024 - 23:48

        Why you getting downvoted? This will work. Although, it didn't for my mate who got 7 reds in a row. He couldn't afford the 8th spin, which was black.

    • BartholemewH on 25/05/2024 - 11:30
      -1

      I was going to say RED. Post the results OP!

  • brad1-8tsi on 24/05/2024 - 10:10
    +5

    I'd use up my concessional contributions superannuation cap for the year and any catch-up contributions available.

    $50k spread over 5 months into IVV.

    $50k spread over 5 months into VDHG or VESG or DHHF

    Your question lacks sufficient detail of your goals to give a better answer

    • AzzDawg on 24/05/2024 - 12:24
      -1

      Thanks!

      I've put some more detail in the OP. Would this change your answer?

      I'll do some reading on your suggestions and done others in this thread, thanks for your input

      • Baysew on 24/05/2024 - 16:33

        Just when they think they got the answers, I change the questions.

        • R R Piper.
      • brad1-8tsi on 26/05/2024 - 09:37
        +1

        I can't help you.

        Everyone wants maximum returns with minimal risk and safety from a market correction. You may as well have thrown in "tax free" to make the quadrella.

        I can tell you that my 22&27yo invest in VDHG while they save for a house deposit.

        My partner who is 5 years from retirement invests in Super & VESG, VETH (the ethical stuff makes her feel good), VDHG & A200. NB: there is truckloads of overlap in that mix.

        When I got my inheritance it made up 15% of my total net wealth. I threw half into Super (retirement being 5 years away) and the rest into VDHG both trickled in over an extended period.

        It goes up & down like the tides.

        • May4th on 26/05/2024 - 10:32
          +1

          agreed keep it simple.. people think mixing it up will give them diversification when they are just overlapping and end up being overexposed to domestic/overseas markets. VDHG or DHHF depending on your horizon. or self roll VAS+VGS . themed ETFs are fine but should be a small portion of total holdings

  • Cluster on 24/05/2024 - 10:20
    +2

    Local and international stock market index ETFs. They pay dividends and have very low fees, and people struggle to come up with better returns than index funds.

  • JimmyF on 24/05/2024 - 10:40
    -1

    How Would You Invest a Lump Sum up to $200,000?

    Half on black, half on Red

    • pjetson on 24/05/2024 - 11:07

      The house edge means you still lose.

      • DingoBilly on 24/05/2024 - 11:26

        49% on black, 49% on red, 2% on green. You can't lose!

  • ozwog05 on 24/05/2024 - 10:42
    +1

    Not on Tesla's

    • Pufff on 24/05/2024 - 17:12
      +2

      But fsd is coming this year!

      • SoapyWooder on 24/05/2024 - 19:36

        What's fsd?

        • 1d0ntkn0w on 24/05/2024 - 20:29
          +3

          Frequently Stalled Deployment

        • MrThing on 25/05/2024 - 11:33
          -2

          fudd service deal

  • Oofy Doofy on 24/05/2024 - 10:56
    +1

    Of all my years of following various financial products…

    I'd have to say IVV…. it's insane how it's done over time, and how it defies the odds, year in, year out. Even when it did get smashed several years ago, all it did was come back with a vengeance. There's that and the currency hedged version, which everybody should do 50/50 with non currency hedged.

    I think there's one mob that does an equal weight version, but the fees shouldn't be more than 3X something like IVV, for it to be worth the extra MER.

    • May4th on 24/05/2024 - 11:28

      hard to go wrong if you buy a broad index like IVV, the broader market always recovers if you have a longer term horizon

      • Oofy Doofy on 24/05/2024 - 20:58

        This is just a some form of an idea of what I would do, in OP's position;

        I'm not going to confirm or deny my own personal investments, they could be the same, or very different.

        CRYP: $2,000 / $200,000 * 100% = 1%
        HISA or Term deposit 12-month: $20,000 / $200,000 * 100% = 10%
        IVV: $53,400 / $200,000 * 100% ≈ 26.7%
        IHVV: $53,400 / $200,000 * 100% ≈ 26.7%
        A200: $71,200 / $200,000 * 100% = 35.6%

        So, overall, the allocations are approximately:

        CRYP: 1%
        HISA or Term deposit 12-month: 10%
        IVV: 26.7%
        IHVV: 26.7%
        A200: 35.6%

        • Oofy Doofy on 27/05/2024 - 18:23
          -1

          If Trump wins the 2024 Presidential Election, IVV & IHVV all day, son.

          That’s my opinion. Wouldn't even bother with Aus market.

          I'd still throw 1% into CRYP, though.

    • JakeyJooJoo on 26/05/2024 - 11:32
      +1

      IVV has gone from (USD) $137 in May 2000, to $532 May 2024.
      That's a 5.57% average Roi annually. With the most recent years being so bullish, It's no doubt a better bet to get a 5%+ savings account.
      If the OP doesn't currently own a PPOR then better yet, buy that new property now (and not gamble the risk of a property price upturn), dump that money in the offset.

      • Oofy Doofy on 27/05/2024 - 12:09

        You want to aim to beat inflation + some extra.

        Robbing Peter to pay Paul is pointless, and that's all a HISA does. It should sit there waiting to be deployed into something else, whether it be shares or property or education costs… whatever is going to help you out.

      • orangecarpet-22 on 31/05/2024 - 12:18

        7.521% total return (you need to include dividends) in USD terms.

  • djones145 on 24/05/2024 - 11:50
    -6

    depends
    personally with 20m in my bank account already.
    140 paid houses
    100m in shares
    i would just drop that lose change on the ground

    wouldn't even pick it up

    might buy that cafe shop, cause I want a coffee.

    • Oofy Doofy on 24/05/2024 - 12:19
      +5

      Nice poop post. 🤓

  • Sye on 24/05/2024 - 11:51

    OzBargain party at your house?

  • Godric on 24/05/2024 - 12:10
    +1

    Red, maybe Black

  • payless69 on 24/05/2024 - 12:40

    Put 99k each in the 2 Dutch banks.
    Spend the rest on skipping ropes.

  • mini2 on 24/05/2024 - 13:50
    +1

    Mezz loans.

  • Autonomic on 24/05/2024 - 13:53
    +8

    If you only have ~12 months then the only realistic option is a HISA.

  • onetwothreefour on 24/05/2024 - 14:42
    -1

    If you're happy to lock the money away for a period of time (12 months) then stick it in a term deposit.

    If not then in a HISA with the highest interest rate.

    I'd just go with the HISA as the difference in rates doesn't make locking your money away worth it.

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