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
Invested appropriately, and assuming "normal returns", you can reasonably expect $350k to be worth somewhere in the $700k to $850k range, although the effect of any corrections, especially in the later part of that period could alter that outcome significantly.
You would need to factor in how much you are looking to drawdown each year in ten years' time, inflation and several other factors to project the level of income you expect to be able to draw, your desired lifestyle, and whether you want to live solely off income or are happy to eat into the capital (plus many other factors).
The big question about retirement is how long to you expect this amount to last, what other assets do you have, and what is your current age/do you expect to still be alive when/if the capital runs out.
You say you have a job. Then you should have a super fund account. Most likely in an industry fund. Talk to them first about how to get the 350k into super, because super is a very good tax haven. They’ll have general free advice. Read some Australian investment books. 350k is a very good start, but be careful of advisors who are not independent. Diversify against risk.
Ahem. Yes, you can with the bring forward provisions under the non-concessional contributions arrangements … ATO
Yes, you can
Your link says you can't.
@jv: Without going into chapter and verse, you can contribute up to $360,000 in a single transaction via a non-concessional contribution, assuming various other conditions are met.
@jv: "you can make contributions up to 2 or 3 times the annual cap amount"
https://www.ato.gov.au/individuals-and-families/super-for-in…
@jv: The circumstances under which you cant bring forward 3 yrs of contributions are very limited (those with > $1.66 million in their super or who are over 75). So apart from very few everyone else can bring forward. Not really sure why you are trying to die in a ditch over this.
@jv: Grandparents have just died so chances of OP being over 75 is pretty low. That OP asked the question indicates that chances of having >1.66m in super is low but, in any case the number of people with balances of that level is very low.
@jv: I feel like you've been consistently wrong about the entire super thing this entire thread (and the people responding to you with the links to the ATO have reliable info).
I know this is all part of your glorious path to 200,000 comments but at some stage does the instinct to stop digging kick in?
@jv: While you are at the same link, have a read of the other rules, which include the aforementioned bring forward provisions.
You are wrong.
You are wrong.
It's in the ATO link above.
bring forward provisions.
Doesn't apply to everyone and you don't know the OP's situation.
@jv: Oh, but you do know the OP's situation?
On what basis are you deciding which rules do and do not apply to OP?
I'm logging off now, congratulations on 250,000 comments if you hit that milestone overnight (judging by the rate of bad takes you're firing off)
Oh, but you do know the OP's situation?
No I don't, that's why I mentioned the rules that apply to everybody…
@jv: Oh, but you do know the OP's situation?
In fairness a 75 year old whose grandparents just died would probably be national news.
One problem with lumping it all in to super though is you'll lose the carry-forward on concessional contributions later in life (they go when your super hits $500,000+). You also risk having a lot of money later in life and very little money earlier in life when you're young and healthy. So I'm not sure about the super idea although contributing some could be a good move.
@markathome: I think voluntary contributions can be withdrawn before retirement can't they? But Yes, I agree. Id rather have investments outside super.
super is a very good tax haven.
Super is not a 'tax haven'.
A tax haven is a country that offers foreigners very low tax liability in a politically and economically stable environment.
Not sure why you have been negged, it is good advice.
Adding $350k to super is very possible unless you have a very high balance to begin with.
Describing super as a tax haven might be pushing it, but it is certainly a low tax environment available to just about everyone.
Mskeggs: the range of comments about what i and isn’t possible with super shows exactly why experts need to be consulted. Why I suggested OP talk to super fund is that their initial guidance is usually free and not pushy. I was simply suggesting super may be one option, and an easy way to include that in the mix is to talk to the fund you already have, often an industry fund.
Agreed.
Definitely wouldn't put all in super. Won't be able to touch for a long time depending on age
55 Burgers 55 Fries 55 Tacos 55 Pies 55 Cokes 100 Tater Tots 100 Pizzas 100 Tenders 100 Meatballs 100 Coffees 55 Wings 55 Shakes 55 Pancakes 55 Pastas
Okay, that'll be $680.
lol
Op at CommBank: "let me go first, I'm doing something!".
I would estimate that at around $9,810 + delivery fees. Depending on how long that lasts you could order that about three dozen times to burn through your whole inheritance. You would find most of it spoils long before consumption, unless you're having a large party every time you order it. If you're consuming it yourself, save a little for the diabetes medication and triple bypass operations.
make it $700,000 mate, download Sportsbet and Load.
Make the most of your new membership here at Ozba.
and dont miss bonus bet
legit haha
in this day and age would this be enough to invest into something to retire in 10 years.
Depends how old you are and whether you own your own home already.
If you’re young, almost certainly not enough to retire in 10years, just a good head start.
High interest bank account whilst you’re deciding. My suggestion if you don’t own property is to buy and live in it servicing mortgage with income. Pay off mortgage and then start looking to other investments.
Only if you put it on black and are lucky.
Look into passive investing. You can easily get between 5-10% pa, maybe more depending on your risk appetite.
You mentioned retirement, so the obvious place to put that money is in super. A careful contribution strategy mixing concessional and non-concessional contributions will maximize your benefit. Whether it’ll be enough for your retirement depends on your other assets, your age, your expectations, etc.
Not financial advice.
Pay off expensive debt (if any).
There are so many variables here and it all depends on your life circumstances.
Speak to a couple of financial advisors.
Are you renting, or do you have a place already that your happy to be your forever home.
does flinders bridge count
Pay off your mortgage and contribute the freed-up income to super.
How do you know they have a mortgage?
I don’t. There isn’t enough information to make any suggestions without making assumptions.
Buy a Tesla.
shares / batteries / ticket to mars
Same comment I made last week on another investment thread
Start with the basics
- bad debts, pay them off, highest interest first.
- high interest savings account, save enough for emergency fund
- super, max out yearly concessional contributions
- ETFs, broad market diversified and stick to regular ongoing buys (eg every 'x' weeks buy '$y' of dhff or 70/30 vgs/vas or any other similarly often recommended diversified buying options)
No point "investing" if you have bad debt (eg credit card, car loans etc), mortgage would be next but once you've made a sizeable dent in your mortgage items like additional super contributions or other investments are options to look at.
I would buy $350,000 worth of manure (horse manure, pig manure and chicken poo).
Then fill every room of your house all the way to the ceiling with the manure. If you don't like the smell and the moisture, you may have to sleep in a tent in the backyard.
Wait a few years until there is a manure shortage, then sell it for twice the price.
buy $350,000 worth of manure
That is crap advice.
Yes, it stinks.
I think he was being faecesitious.
Investor quadruples their money using this one simple trick.
Man alive, OP's around here that want good advice but give scant info. Garbage in, garbage out my friend. No person can give you the correct advice for you on that info alone - as we have no idea of your other assets, liabilities, family situation, risk profile, etc.
SO I'm going to go generic as you've expressed interest in retiring - pop as much of it as possible into your superannuation. Secondly, make sure your super is set up in either a well regarded, low fee fund in the correct investment options or if you'll have $400k+ and feel you're up to it - set up a SMSF.
Invest smart in super and as soon as you can change the fund status to pension - all CGT will be absolved - thats a hell of a benefit vs outside of super.
User name checks out
You have to spend time to educate yourself. Take advice from financial professionals, start with your existing accountant. Get into the habit of reading to improve financial literacy.
Park your $350k into some high interest savings account for now until you are confident enough to understand investing and it's risks. Then start building your diversified portfolio with some money corresponding to the risk you can afford to take, after paying off any debts that has interest rate more than the high interest savings account interest rate.
Bet it all on Trump at $1.67 on Sportsbet.
If he wins, you win. If he loses, everyone wins.
Wow, I can't believe that's the real odds. Harris is at $2.30 for comparison.
Funny you say this as I seriously had considered placing such a bet as an emotional hedge against him getting in. As he would say,"SAD"
Only the 'Bestest Sad'!
Clear all debt (like House mortgage et al) then seek an independent Financial Planner.
Avoid idiot recommendations like Bitcoin.
Talk to someone, a financial planner etc , someone recommended to you by someone you trust ideally.
The fact you've provided so little detail and asked this question shows you need someone with a bit more knowledge on the subject to sort you out.
Buy a cheap apartment and put the remaining into $XRP (ripple)
great advice if the apartment is 350k
Get a copy of Noel Whittaker's "retirement made simple"…
So the situation is currently this,
I currently have $170,000 portfolio mostly VAS, my home that i live in is fully paid off ( only a 2 bedroom apartment with $0 debt) also got inheritance of $350k which i will get in the next 4-5 weeks.
I want to be fully retired by the time i turn 42. I am 32 at the moment.
Here is what i was thinking of doing, although kind of risky and having second thoughts about it.
My apartment value is $750,000 i was thinking of taking out a loan against it @ 80% so essentially that would give me $600,000 plus the $350,000 that i will get plus $170,000 already in the market.
Would it be risky to chuck it all into the US Markets / Aus Market and just call it a life. Etfs.
So essentially having around $1,120,000 in the stock market in the next two months.
So essentially having around $1,120,000 in the stock market in the next two months.
-1
So essentially you came here to flex
I won’t ask how you got a paid off $750k home and $170k in investments on a $70k income coupled with the absurd risk position you are putting forward that suggests limited investment experience.
Consider what happens when you are 48, retired for 6 years and the markets tank so you can’t pay your bills. Who would employ you? How would you recover? That plan assumes no market crashes for the rest of your life.
Why you would leverage a fully paid off home is beyond me, but if you can sleep at night, go for it.
But your ambition to retire in 10 years doesn’t require such heroics. If you maintain your current investments and work, and invest your $350k along with your $170k you will likely have around $1m producing circa $70k p.a. in growth and income. You would be able to sustain your current lifestyle, and super you have accumulated to date, plus over the next 10 years will be a substantial bonus when you hit 60yro.
Personally, were I lucky enough to be in this situation I would probably plan to work 11years, and then go part time for some years, just to allow your investments to grow enough so you can take $70k p.a. without decreasing the capital.
Consider also your priorities might change. Some people aren’t very mature even at 32, and then discover they want relationships or a family, or other things in life that require more than a $70k p.a. income.
that's poor risk management. 80% loan on 750k would be about 900 per week in repayments. that's essentially 100% of your post tax income. if the market dips and you need 2-3 years to ride it out, where are you going to get your living expenses from?
I'm not one of the negs, but I'd recommend you strongly against this plan. Your current diversification is better (real estate + shares). That you feel this could work but hold mainly VAS, meaning you're very high on AUD assets making you exposed to currency devaluation - says to me its not a path you should try yet. Invest the inheritance, I stand by super as being a good place for a bunch of it. Every dollar you put into it now will be worth 4-5 by the time you hit 60, so even a decent sum will get great returns (if invested well).
Putting all your eggs in one basket, especially when the market is at historic high probably not a great idea. On the other hand, you have a long timeline. So, it may just work out in your favour.
Another thing to consider would be, what would you do with your early retirement. Because retiring can be life changing decision.
Ahaha, that makes no sense. How are you going to get 750k loan with 70k? Its impossible to retire at 42 with such a small budget. Also you would have to pay back the loan. Even if you got that big amount the interest would be 6%. And with shares you are looking at maximum 9%. You are better off maximising your super (which you can only start accessing at 60 anyways). For now chuck your plan in chatgpt but then get a financial/tax advisor. Your plan makes no sense
I don't want more money in my super, don't like the idea of trapping my money until i am 60 plus years old. I might not live that long, i might live until 90.
Super is a scam in my opinion, but thanks for your useless opinion.
Wow financially ignorant and rude. Super combo.
thanks for ruining my weekend. will keep staring at my single digit bank balance
Exact same post was on Reddit a few days ago.
OP just wants a get rich quick scheme - will be broke in 10 years.
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Do your home work.
Not only that. It's the fraud and the certainty that you might not get your money back even if it goes up
Lol 😂 ! Hater is going to hate without reasoning.
Definitely need to hold Bitcoin if you are paying ransomware, buying kiddie pics or avoiding currency laws - who doesn't need it!
Not sure why so many negs.
You are probably getting it from both ends.
Brag post negs.
And,
Risky investment idea negs.
Retire and do what? You can’t just sit at home and feed the chooks all day.
I agree with you if you retire too early, what are you going to do.
Unless you are still making a decent passive income or just have too much money to worry about spending it.
I feed the rabbit and clean it's poo.
Travel dude. Enjoy life. Who cares aboutwork?
Retire and do what? You can’t just sit at home and feed the chooks all day.
I know this wasn't your point but god this sounds like heaven atm.
Probably because you're wasting everyone's time. You're new to this site, simply bragging about an inheritance and absolutely not seeking advice. Are you looking for someone to pump you up? Congratulations for being given something that you haven't earned? Meh.
60:40 VAS & VGS
Put that on nvidia and relax
$350k is barely enough for a house deposit in Australia haha
Come to Perth, you can get a nice huge deposit down in Wellard on a 4 x 2
ASX: FMG and let the dividend pay for itself in 7 years
ASX: LRV might be a good place to put in $10 to $20k and let it ride out.
I have both.
Not investment advise
I looked into FMG and from my research if the current dividend stays the same it would pay off in 3-4 years? I really like FMG and don't have that much guts to put $350,000 in one stock, however the dividends are bloody amazing.
What is the situation with LRV and your target price?
mining is a very cyclical game, and with China's economy going down the drain I'd be wary before diving in
Not taking a position on the idea.
The reason the dividend is amazing is because the dividend is expected to fall just as the iron ore price has.
Some believe that China's problems are intractable and they won't have any use for their almost record inventories of ore as they won't need as much steel as they did for housing even if their infrastructure and industrial investments provide some demand.
Tbh, these are the naysayers: I think, in the long term, it's not unreasonable for FMG to be above $19 and paying an even greater dividend than it is now. What if another big nation suddenly increased its demand for iron ore? It's a bit of a gamble - as is your remortgage-the-apartment idea.
3.5 Bitcoins