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

    • Zodiacmindwarp on 25/05/2024 - 12:59
      -1

      Is there any 12 month term deposit better than a HISA?

  • AustriaBargain on 24/05/2024 - 15:06
    +1

    Uber Eats.

  • netjock on 24/05/2024 - 15:58
    +1

    unsure when and where at this stage but obviously will need access when this time comes.

    Doesn't this define what you can put it into because you need certainty over an uncertain time frame.

  • DashCam AKA Rolts on 24/05/2024 - 16:37
    +1

    NFT. Won't someone think of the chimps?

  • Dack Smith on 24/05/2024 - 17:35
    +1

    Any cryptocurrency is good

    Over 1000% returns annually and no risk whatsoever.

    You’d be a billionaire in no time

    • Jimothy Wongingtons on 24/05/2024 - 19:29
      +1

      Honesty wish I had just aped out on PEPE.

      Cries in SHIB

  • Smileynae on 24/05/2024 - 18:08
    +1

    If you sold an investment property, definitely consider making a concessional contribution to super (talk to your accountant). You only have a month to decide though. If you are looking to rip the money out in 12 months time for a property your best bet isn't investing in growth assets unless your willing to draw the funds at a loss.

    Your best bet for a short term investment is cash and term deposits. Rates are great.

  • Mregmi on 24/05/2024 - 18:39
    -1

    But ETFs

  • TChalla on 24/05/2024 - 19:19
    -1

    NHC and WHC half and half.

  • SoapyWooder on 24/05/2024 - 19:35
    +2

    Put in ING and ubank. You get 10k pa. Invest the interest only in Vanguard index funds routinely to get dollar cost average, do not put it in all at once. When you get more comfortable, you can add bit by bit of the 200k. Depending on your mortgage / work situation, may want to put in to offset account or do salary sacrifice.

    • umoddbro on 24/05/2024 - 20:14
      +2

      Thats pretty much what I'd do, invest interest earnings into ETFs keep money in HISA and wait for market correction/dips to invest more. A 50/50 split between A200 and IVV should do it.

      • SoapyWooder on 24/05/2024 - 20:27
        -1

        What platform for IVV?

        • umoddbro on 24/05/2024 - 20:28
          -1

          I use stake, IVV on asx.

  • surg3on on 24/05/2024 - 19:54
    +2

    "Money is from selling property. At some stage (likely in the next year) I'm looking to get back in"

    Seems like a Australian property ETF would be a good idea. It goes up, it'll help cover your new house going up. It goes down, your new house has gone down.

    • Zodiacmindwarp on 25/05/2024 - 13:01
      +4

      Australian Property ETFs don't invest in residential and they're rather volatile at times

  • bocca on 24/05/2024 - 20:00
    +4

    I think your goals are a bit conflicting: Maximum returns & Minimal risk. Maximal returns usually means highest risk.

    Short term:
    Given that you want to enter the property market on the future you might want to consider a term deposit or high interest savings account.
    Pro: lowest risk, safest
    Con: can't pull out at any time (or you might lose interest or pay a fee)

    Long term:
    If you don't need the money for 5-10 years then ETFs might be a better option.
    Pro: It's a higher return. Can pull out any time
    Con: not good for short term

    • May4th on 24/05/2024 - 22:13
      +1

      buy high sell low

  • FareEvader on 24/05/2024 - 21:59
    +2

    Bitcoin

    • RTX9090Ti on 26/05/2024 - 10:07
      -2

      Check out new coin: SHIT

  • Pecan on 24/05/2024 - 22:51
    -1

    Don’t forget the CGT implications at play here, don’t lock it all away without considering the tax bill you’re about to get

  • Trying2SaveABuck on 25/05/2024 - 07:02
    -1

    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.

    High interest saver based on your critieria here is the only thing that would really fit

    if you're not looking at spending it IVV or QUAL

  • kusala on 25/05/2024 - 08:48
    -1

    I have had money invested with Latrobe Financial for the last 2 years. It is a 12 month term account with 30 days written notice required to withdraw at maturity. The current variable rate is 6.75% with monthly pay outs of @ $800.

    Options
    Classic Notice Account 5.15%
    90 Day Notice Account 5.45%
    6 Months Notice Account 5.70%
    12 Month Term Account 6.75%
    2 Year Account 6.85%
    4 Year Account 8.40%

    All are subject to current variable rate after fees, reviewed monthly

    https://www.latrobefinancial.com.au/investments/

    • Zodiacmindwarp on 25/05/2024 - 13:06
      +1

      Are Latrobe Financial Term Deposits covered by the Australian Government Bank Guarantee?

      • Gaz1 on 25/05/2024 - 15:51
        +1

        On their FAQ page it says:
        "When considering whether to acquire or to continue to hold an interest in the Fund, you should remember that an investment in the Fund is not a bank or term deposit, and is not covered by the Australian Government’s deposit guarantee scheme"

        • Zodiacmindwarp on 25/05/2024 - 17:31
          +1

          Ouch!

          • Gaz1 on 25/05/2024 - 17:41
            -1

            @Zodiacmindwarp: Yes, they used to have much higher rates than the banks but now the difference is a lot less so probably not worth the risk.
            They do have a free Qantas points promo at the moment, although the value of these has negligible value for the investment involved:
            https://www.latrobefinancial.com.au/investments/qantas-inves…

            • gromit on 26/05/2024 - 16:11
              +1

              @Gaz1: They also do not guarantee to honor the withdrawal request timelines specified for each account, while unlikely to happen you could be stuck waiting up to 12 months if things go bad.

              • kusala on 27/05/2024 - 22:53
                -1

                @gromit: I withdrew a portion of money from my 12 month account last year & received it within two business days

                While there is a risk of not honouring your withdrawal request within 2 business days, 90 days or 180 days, it’s important to note that there has never been a case in the history of the Fund when we have not honoured a withdrawal request on time due to a lack of liquidity.

                • gromit on 28/05/2024 - 07:48
                  -1

                  @kusala: As I said the risk is low, but if they get a run on fund you are screwed every which way as no AU Gov protection and no guarantee to get access to your funds. It is just something to be aware of, probably never happen, but many financial disasters were expected to never happen.

                  • kusala on 28/05/2024 - 09:37

                    @gromit: I agree that there is a risk element involved. This is detailed in the PDS. If I was relying only on online research, I probably wouldn't invest any money with Latrobe or similar credit funds. However, it was recommended by our financial adviser who manages our portfolios very well. I trust his judgement. I'm not trying to sell this product to anyone. I am just saying that it works for me at present.

                    • gromit on 28/05/2024 - 09:56

                      @kusala: Don't get me wrong, Latrobe are fantastic and I have had money with them in the past. Just more a warning to remember this is NOT a standard bank account/term deposit with government guarentee's and instant access to your funds "may" be delayed and hence you should keep that in the back of your mind when making investment decisions.

                      • kusala on 29/05/2024 - 19:11

                        @gromit: Thank you for your concern. I was aware of the drawbacks you mentioned at the time of investing with Latrobe. Today, I spoke with my financial advisor. This is what I remember from the conversation (I think he probably explained most of this to me on an earlier occasion)

                        • First mortgage companies often offer larger loans than banks, e.g. for major construction work, and also spend more money analysing prospective loans than do banks - one reason their lending rates are higher.

                        • Banks are underwritten by the government for the first $250,000, but beyond that, they can only return deposits when they have the money. If there is a major financial crisis, then all lenders have clauses not to pay borrowers immediately. Typically, banks have @ 7% liquid assets. Lenders like Latrobe may have slightly higher liquid assets.

                        • Latrobe is on the approved (constantly monitored) list of Australian investments for wealth management companies. If it wasn't, it wouldn't be possible for financial advisors to recommend this product to their clients. Latrobe investments (typically the 12 month account) are regularly included in client's portfolios by my advisor's wealth management company. If the approval rating of Latrobe had a downturn (e.g. performance deteriorated due to CEO change etc.), it would be the advisor's duty to recommend withdrawing funds.

                        • Latrobe is highly rated each year as a lender by independent research institutes such as SQM & Lipper.

                        • For the last 15 years, Latrobe has been ranked by Money Magazine as either the best non bank lender, or the best 12 month deposit account.

                        • Latrobe is a large company with 19 Billion in managed assets, has 100,000 investors & has been operating for 70+ years

                        • There is risk in all investments 🙂

                        • gromit on 29/05/2024 - 20:39

                          @kusala: Lehman Brothers had been around since 1844 (so 164 year old company) with over $600B in assets winning a plethora of awards for best investment bank. Not for a moment suggesting Latrobe are capable of going the same way, but those stats in the scheme of things mean bugger all, just about every advisor in 2007 would have told you Lehman was one of the top choices with best returns.

                          • kusala on 29/05/2024 - 20:56

                            @gromit: I think the salient point of those I've mentioned is that Latrobe is on the approved list of investments for wealth management companies & it is included in their clients' portfolios.

                            • gromit on 29/05/2024 - 20:58

                              @kusala: As was lehman brothers

                              • kusala on 29/05/2024 - 21:46

                                @gromit: Apparently, bad management was a major cause of Lehman Bros collapse?

                                • gromit on 29/05/2024 - 23:25

                                  @kusala: It was a classic run on the bank, the run outstripped ther liquid assets as they were heavily involved in sub prime market which after a ratings downgrade and reassessment of asset values meant they could not pay out clients wanting to exit, rapid cascade from there. They made management mistakes but really it came down to picking the wrong assets to keep and sell and they being stuck with those lemons.

                            • May4th on 29/05/2024 - 23:24

                              @kusala:

                              Latrobe is on the approved list of investments for wealth management companies & it is included in their clients' portfolios.

                              that doesn't mean anything either. I don't think there's any issues with La Trobe at all but the risk is there, as with any investment

                              • kusala on 30/05/2024 - 16:49

                                @May4th: I agree, there is risk in any investment. You probably have much more experience with financial markets than me. However, I am grateful that I have a competent professional managing my portfolio. The monthly payments from it have become my major source of income.

    • kusala on 25/05/2024 - 19:32
      -1

      A couple of years ago, I approached my family's trusted financial advisor saying I was thinking to invest some money in government bonds, but was finding the process a bit complicated. He suggested Latrobe as a very stable investment platform. Latrobe have been operating for 72 years & they claim no investor has ever lost money. I am happy so far. I invested smaller amounts on four occasions which gives me four different dates in a year to withdraw portions of the money. I have some big expenses looming, so will probably withdraw some money in the next couple of months.

  • Eeples on 25/05/2024 - 10:23
    -1

    Since I’ve just retired I would probably top up my Super with 200k as I’m keen to start an income stream next year.

    Hope this helps.

    In your case the money would be easily accessible from the income stream started next year. So you could easily withdraw some to put towards the purchase of a house.
    You’re 60-ish, right?

    • AzzDawg on 01/06/2024 - 09:15

      I'm 35.
      Nowhere near income stream age yet it's a great option and one I would definitely consider if I was closer to the age required. Thanks

  • Hangryuman on 25/05/2024 - 11:14
    -1

    I bought FANG (AU listed ETF) which my spreadsheet shows as having returned 64%pa last year

    I also saw returns of 25%pa for IVV last year

    with the rule of 72 for doubling, every 7.2%pa better will double that amount in 10 years compared to the lower returning investment

  • MrThing on 25/05/2024 - 11:32
    +1

    200k on doge

  • greenie on 25/05/2024 - 12:57
    +1

    HISA if you need the money within 5 years to buy another property.

  • Dack Smith on 25/05/2024 - 13:11

    OP has flown the coop….. troll thread lol

    • AzzDawg on 01/06/2024 - 09:17

      Not down the coop, had a hectic few days.

  • da1andonly on 25/05/2024 - 13:58
    -2

    Get a yangwang, hottest thing on social media right now

  • Click_It on 25/05/2024 - 14:06
    +1

    Crypto, name your project based on risk tolerance. Don't know your risk tolerance, time horizon etc but 200k into BTC until 2028/29 or 2032/33 will do very nicely at the least risk (for that asset class). If you want to work your capital in 6 months there are options too, albeit higher up the risk curve.

    In fact the worst thing you could do, is nothing. Inflation is real.

    Get an asset of some type, you choose.

    EDIT: Oh this is a troll thread, in that case, throw it all on SHIBA and sell in 2027, it will be a cool magic houdini act. Now you see it …

  • Johnsy5252 on 26/05/2024 - 19:34

    A month in Thailand. This would nearly cover it.

  • gentlekoala5906 on 27/05/2024 - 06:46

    All in NVDA

  • dylan345 on 27/05/2024 - 09:43

    Heard a few times, lump sum investing to diversified ETFs 70% of the time out preforms dollar cost averaging into the same ETFs.

    Which ETF I would pick for maximum gains to lower risk ratio over say 20 plus years? VDHG or A200

  • whitepuma on 27/05/2024 - 13:48
    +1

    Into an investment that you understand.

    There's more than 1 way to earn money from investments, there's also more than 1 way to lose money from investments

  • CheapskateQueen on 27/05/2024 - 21:55

    if you're looking to buy again within 12 months just find the best savings rate.

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