Hi people of ozbargain………………………been reading and getting deals for a long time from this website……..i will be getting $350,000 from grandparents in the next 3 months, in this day and age would this be enough to invest into something to retire in 10 years. I have a 70k job at the moment.
Where would you invest this cash? Thanks
Maybe because if one knows nothing about investing they are best to find out about investing rather than blindly invest in QUAL or blah blah blah.
Maybe because if one knows nothing about investing they are best to find out about investing rather than blindly invest in QUAL or blah blah blah.
I know people here are pretty stupid but when someone says invest in ETFs what do you think that are talking about?
QUAL/QHAL, VAS,VVI, VDGH, IWLD etc are ETFs it is where you invest if you dont know anything about investing
in basic terms it is index investing i find it amazing people have liked the ETF comments but not the comments with which ETFs to buy.
Regardless if my opinion is wrong fair enough
As for QUAL this is probably one if not the best options for someone who knows jackall about investing as it is essentially the best companies on the planet - it also has a 5 year average return of just under 16% pa the ASX index is around 9% pa and the S&P500 is around 12% in the same time
@Trying2SaveABuck: only comment on qual is that it's US (76%) and tech heavy (30%+), and a lot of the recent gains can be attributed to NVDA/Nasdaq run. so if you are looking to diversify adjust your portfolio accordingly
@May4th: The entire point of a (passive) ETF is it adjust itself lmao
Do you know what 'quality' actually means
And the filters used to determine it?
If not dont worry much smarter people will sort it for you! - thus QUAL or if you worried about currency QHAL
@Trying2SaveABuck: it's a comment not a criticism, you don't need to defend it like your firstborn. yes I do hence my comment, it's a blend between a true index ETF and themed ETF which gives you greater exposure of a particular sector of the market - quality companies with metrics for inclusion is great but leaves you overexposed to markets I just mentioned. may work for you, may not depending on how defensive you are, hence the comment
as an example, nvda apple microsoft and meta makes up almost a quarter of this index. you know what else performed great in the last 12 months? NDQ went up 29% too. diversification is a consideration for portfolio holders
@Trying2SaveABuck: idk why you were downvoted. Solid attempt here.
Those who wants to see active vs. passive, try look up SPIVA numbers.
I think the main reason was it was bad advice from someone unfit to offer it
Plus being at the top of the thread means more people are seeing it so you're more likely to get a vote rating before they read the other comments
it wasnt advice but if it was advice it was very good advice ill stand by it =)
@Trying2SaveABuck: Looks like you've invested pretty heavily into Dunning-Kruger
The returns are nowhere near as impressive as you think they are
@Trying2SaveABuck: This is why australians are in the sh its and inflation and immigrants and things like Israel vs Russia… Cuz unsolicited garbage
You are literally offering financial advice.
You can't just say this is not financial advice and then give financial advice for what it's worth too.
That's what they're supposed to do, and that's what they all do.
"This is not financial advice…. Blah blah"
'I'm not being difficult but.. '
'I don't want to be rude but..'
Throwing a 'this isn't financial advice' disclaimer on your share tip is like writing 'this isn't a confession' on a bank robbery note. It doesn't change the fact that you're still breaking the law.
If you listen or read content written by people that actually know what they are talking about they will never tell you what to do, they will just stick with facts of the situation and like their disclaimer says, they don't actually give financial advice.
@smartProverble: I didn't say it's right or wrong, just that they are not licenced to provide advice. I can't give advice, but it is impossible to recommend without a lot more information about their individual circumstances.
He made this comment without knowing total assets, PPOR position, dependants, spouse, household income, job, super balance, super investment strategy, age, risk tolerance, household expenditure, insurances, goals, etc.
You'll earn an estimated $28,000 income per year from a $350,000.00 investment yielding 8.00%. So… not in 10 years. If you want a low risk investment I suggest parking it in ETFs for 15-20 years, reinvesting every dollar you make, or purchasing an investment property and working with an accountant to make it work as hard as it can for you. Property growth will generally outperform every other low-medium risk market in Aus.
8% yield?
low estimate
8% nominal based on historical performance (as per Vanguard 30 year chart) but post tax likely lower.
30 years is not a sufficient timeframe to extrapolate with much degree of confidence
Not sure what your point was?
indeed its not a constant growth as market goes through noise and cycles.
and indeed any number one throws out is not a fixed return over time.
S&P 500’s 30 year return was remarkably stable at 9-11% over the last century, but the sequencing risk indeed means that the true return heavily depends on your entry and exit points
Having explained myself, can you kindly elaborate what you meant by “not sufficient timeframe to extrapolate”?
Assuming the yield is a consistent 8% and you draw it all out every year, in 20 years you'll still have $350k producing $28k income which will buy next to nothing due to inflation.
how about a high yield bmw?
The floor is the limit.
Unless you crash it without insurance - then you can go lower.
The floor is the limit.
One can choose to dig a deeper hole for themself though.
But he needs to be at Westpac and only cars worth $85k are high yield investments. He's still got $265k to spare.
Not financial advice
Is there actually any real risk of someone suing without this disclaimer??
I'd say it is more likely that van2walker has a job which requires a Financial Services Licence (FSL) and/or training qualification under Regulatory Guide 146 (RG146 - Licensing: Training of financial product advisers) or similar - in which case that person always has to be careful because they have to do disclaimers and product disclosure statements and things for non-sophisticated investors and could lose their licence / qualification / job if they are handing out financial advice without it complying with the requirements, considering their circumstances etc.
This :)
Lets just cut it to the bone
PROPERTY PROPERTY PROPERTY
Property is not low risk. I have many SMSF property horror stories I could tell you.
Do they involve off the plan apartments?
BTC is trending towards relative stability, another moonshot won't be happening in my opinion. I sold everything on the second peak
If Bitcoin is going up 1000% should put it all into Bitcoin
There are no guarantees in life, but 0.1btc is a great starting point to dip your feet in, yet be sufficient to do very well in the coming decades. 0.1btc is around ten grand. Part of investing is having a high risk, high reward portion of your investment and I think having a highly liquid limited asset that cannot be printed is a smart move as part of a balanced portfolio.
50k in Bitcoin (it will 10x in 10 years, look at the trends)
Tell me you have failed investments in Bitcoin without telling me you wasted money in Bitcoin
I am at 10x + a bit more already. Can't help you sorry.
Classic failed "investor" trying to lure people into the Ponzi scheme so that they can tell themselves that they're leaving on the pump and not the dump.
@Mechz: This "ponzi scheme" thing that constantly get's brough up is exhausting. It is people just parroting what they have heard without actually doing any research into the topic. It will have been 16 years since the White Paper - it would have been the longest scam in history. It is in the top 10 more valuable assets list by market cap. Microsoft today filed with the SEC to do a vote on allocating some of their treasuries into it. I would love to hear from them who exactly is the CEO who is in on this "ponzi scheme.".
Set up a SMSF in 2020 and converted it into BTC. Personal holdings paid off my mortgage earlier in the year and started stacking sats again. Absolutely no regrets.
Now see how many negs I get.
@Mechz: Don't you find it weird how people aren't desperately trying to convince you of how well index funds are going to perform with absurd claims? Is it perhaps that people who buy vanguard don't need to hook others in to see any growth?
When the only way you can make a profit is by conning other people to buy in, you should google pump and dump, so you don't end up being the chump left holding the bag.
@Charmoffensive: The only chumps, will be those who didn't see something so good literally staring them in the face and not at least putting a small amount into it as a hedge.. BTC will keep absorbing all the endless QE and grow stronger and stronger. BTC's upper price is only limited by the governments ability to keep creating money from nothing.
BTC's upper price is only limited by the governments ability to keep creating money from nothing.
I see someone has been drinkning the koolaide instead of actually looking at the technological limitations of the slow as shhht blockchain as opposed to say, how many visa transatictions can be validated hourly. BTC is just tulips for nerds and the terminally online.
Is that you Rekttrading?
Nein
Do I look at the trend that has BTC at around the same price in USD it was in November 2021, and that's only if you're stupid and don't factor in inflation? Or do you have some particularly selective line chart you'd like me to look at instead?
Im sure if you select a similar small timeframe in the S&P charts going back since its inception you'll find the exact same argument against yourself.
You could certainly retire in 10 years if you are currently 50, have $300k in super and add this to it. Presuming you own your home or are prepared to move somewhere with cheap housing.
If $70k income is before tax income to be replaced, and you will reach 60, you could probably retire in 10 years even with no super, but it would be a more modest retirement. But with $70k current income you aren’t living a glamorous lifestyle, so it should be fine.
For both these guesstimates, I am assuming you move the inheritance into super and invest in growth, doubling your money over the next decade with low taxes.
If you are younger, and you must retire in 10 years, I’d say it is only possible if you moved to a low cost country such as one of the places in south east Asia. That is more complex, but also probably possible.
probably possible
Usually always 😉.
Totally agreed with super. Especially ops mentioned he wants to retire in 10 years. Nothing beats cheap tax investment in super fund.
Perhaps spend $20 first to get a copy of The Barefoot Investor & build up your financial knowledge. There’s no rush to invest it right away
There's free copy of The Barefoot Investor at many local libraries and some has free ebook to borrow.
And saves $20, the ozb way!
Also Noel Whittacker books
I enjoy Noels advice column in the money section of the Sydney morning Herald but in the back of my mind I always ask myself - if he knows so much about money, why is an over 80 year old still working?
Some people don't like playing lawn bowls all day, may as well keep contributing
Because he enjoys the work he does, more of a hobby than work. He doesn't share his numbers often but in interview I listened to he was getting over $400k per year in dividends from his investments which means he would have to have around $10mil depending on yield etc.
If all I needed to do was to tell people how to run their lives, and getting paid for it. I will do it too. When one is 80 years old, I guess there aren't many people who are willing to listen to them.
Some people might love what they do.
I’m not one of them so I’m pretty jealous, but not everyone works just for the money…
if he knows so much about money, why is an over 80 year old still working?
Contrast Whittaker against the OP, who is 32 and intends to retire at 42.
So by your logic, one would be far more likely to take advice from the OP than Whittaker. So I put it to you, with no offence meant to the OP - but your logic is flawed.
You'd have to ask Noel why he keeps working - maybe he loves it, maybe as George Best said he's spent all his money on women, cars and booze - the rest he's just wasted! ;-)
why is an over 80 year old still working?
Same reasons as all the other high net wealth people that work well into their 90s? They like the power, the respect, making deals, etc. Possibly they have no other interests in life?
Go to japan and there are plenty of octogenarians working
Hell…I found a free PDF version of it online after about 10mins of searching.
First things first, I'd park as much as possible in high interest savers while the rates are still high and you are figuring out a long term strategy such as property investment or ETF.
An average of 5% interest rate is $1500/month on $350000.
How old are you and do you own your own home?
Asking for financial advice is personal
This really is financial advisor territory.
Do you have a mortgage? Married? Children? How's the Super? Age? Retirement goals?
Depending on all these, your advisor would be looking at maximising total returns across the family and then access to part pensions etc. Bearing in mind that costs for nursing homes and bond refunds change as of 1/7/25.
Seems far off and irrelevant but if you're 40+, it's something worth speaking to a professional about.
OP is too lazy to bother putting any details in post. That money is probably getting blown
This is financial advice
all on black at the casino
The Adrenaline rush if it gets up would be unbelievable
If you win, double or nothing.
Always Bet On Black - Wesley Snipes
Make sure you get the table with 3 zeros, it means you'll add more zeros to your winnings.
nah green it pays out more.
Wesley Snipes agrees.
As others have said, generally speaking $350k on its own without other savings won't get you far.
Paying down any debt you have, then investing in ETF's or a PPOR would be a solid start.
Damn though, some people have all the luck with inheritance vs working and saving the money themselves. Don't squander it as it really is a golden opportunity to set yourself up right.
I know some people who were born into wealth and just always knew they would inherit millions one day. They have trusts named after them and just waiting until they can get it, but not like they need it because parents buy them houses already. They never really seemed happy either, but I guess if they were poor they would be even less happy. Imagine marrying into that even, you're set for life, it doesn't matter what you do professionally (statistically anyway) because you two are going to inherit more one day. You just need to live your life.
My Dad until recently was a Chauffeur for 25 years. His regular clients are some of the wealthiest people in Australia/the world. I asked him once when I was younger if they were happier due to their wealth, his response was 'No, they just have different problems'.
Being in my 30's and now having friends who are quite wealthy either through their own work or inheritance I can see this is exactly right.
I'd rather cry in a Bentley than in a Ford.
I remember listening to John McAfee talk about being rich, and he was talking about how he would get calls from his maintenance guy about things going wrong all the time in his overseas properties like water leaks and such, the more money you have, the more sh*t you need to be dealing with because you own all this stuff and dealing with that is a job in itself.
@ProlapsedHeinous: Once it is known that you are wealthy the number of people who have zero qualms about relieving you of your wealth increases exponentially.
NOT LEGAL ADVICE
Speak to a financial planner.
Member Since 2 hours 48 min ago
Trying2SaveABuck on 24/10/2024 - 07:24 Comment score below threshold.
