Investing money?

[Philthy]

I'm looking at putting some money away somewhere for the future and was wondering what people think is the best way to go about it.

I'm not sure on the exact amount I'll have, but its likely to be $5-10g to start with. Might not sound too much, but at least its a start

Of course I'm not going to start throwing money around based solely on what some guy with a computer tells me to, but I am just looking for ideas to look into.

Not too interested in big return risky crap, but looking for something a bit better than just having it sit in a bank account.

Anyway, thought I'd throw it up and see what people on here have done

[SeanVZute]

Share market would most likely be your best bet, get onto one of the smaller mining companies that are expanding with big projects, can usuall get them for like $2 -5 a share, and are likely to skyrocket with the mining boom ready to start again.

[Philthy]

Share market would most likely be your best bet, get onto one of the smaller mining companies that are expanding with big projects, can usuall get them for like $2 -5 a share, and are likely to skyrocket with the mining boom ready to start again.

Thats what I thought at first, but how is this tax thing likely to affect them? Or is that just massive media hype

[SeanVZute]

I don't think the tax will get through the two houses of parliament, the government would be stupid to shoot themselves in the foot by taxing Australia's biggest and most profitable export.

[_R_J_K_]

I'm not sure on the exact amount I'll have, but its likely to be $5-10g to start with. Might not sound too much, but at least its a start

Better than most.

Have you looked at a term deposit? Returns aren't very big and it takes a lot of time, so it may not be what you're after, but it is safer than shares (not that they're a bad thing). You can usually get deposits that last a few months, and you don't have to do anything. At least it will be sitting there getting some interest instead of nothing. Have a talk with your bank to see what they can offer you.

Or you could go for one of those Nigerian email offers, I hear they're top notch!

[VY03]

How about in investing in gold

[minux]

lol @ sharemarkets, who would "risk": such a volatile market.

My investments are low interest in banks. Money is safe and I have more than most who did invest in shares.

Long term they are a much better option. I suggest seeking out a high profile financial advisor. Best thing money can pay for

[alien]

If your looking at buying a first hosue in future then look into the First Home Savers Account. Got some pretty good bonuses with it. Otherwise Share market if you know what your doing. Or term deposit or high interest account.

A good financial portfolio will geared how you want it though and usually dabbles in all sorts of savings, just the percentages vary. Colonial First (i think it's them) have a free risk analysis tool that can guide you to what sort of percentages you would most likely be comfortable with investing in what sort of accounts. As those above have said, a financial planner is definatly worth the money, i get a regular customer who comes into my work and we bounce ideas of each other and share information, i'm just lucky i dont have to pay the fees for one

[Bravotwozero]

lol @ sharemarkets, who would "risk": such a volatile market.

My investments are low interest in banks. Money is safe and I have more than most who did invest in shares.

Long term they are a much better option. I suggest seeking out a high profile financial advisor. Best thing money can pay for

Like Mick Gatto? High profile enough?

[Philthy]

I'll have a chat with a financial advisor before doing anything as well. Down the track I have the opportunity to start up a small business within 10 years, so this money will hopefully be the start of getting all that organised.

I think there are definately safe (relatively) options in the sharemarket, its just a matter of figuring out whether the returns are actually that much better than having it long term in a bank account though

[Bravotwozero]

As soon as you can buy a house if you haven't done so already. Mine makes more money than I do!

[Junny]

start a business =D.
I had an argument with my old man, he said i was a piece of shit... So i moved out of home... started my own marketing company... made his weeks income daily.
Now I'm paying off my own house, and his.

[Reaper]

lol @ sharemarkets, who would "risk": such a volatile market.

My investments are low interest in banks. Money is safe and I have more than most who did invest in shares.

Long term they are a much better option. I suggest seeking out a high profile financial advisor. Best thing money can pay for

I do and have done very well out of it. Short term trading does carry a higher risk commensurate with the potential reward however over a 5 - 7 year time frame the share market does out perform most other asset classes. With the recent GEC and european instability + our own Govco own goals, there are many excellent buying opportunities in the ASX at the moment.

Another asset class that has done exceptionally well over the last decade is property. Once again, it's a medium - long term investment with minimal overall risk.

Low interest in banks is indeed one of the safest investment classes however the reward is also very low and not very tax effective.

To the original poster - the best advice is to speak to a licensed financial planner who will evaluate your specific circumstances and goals thus tayloring a plan that fits in your own risk/reward thresholds etc. Nobody on this forum should be offering anything more than general advice and you should consult with your financial planner before making any investment.

Reaper

[SeanVZute]

I've had shares in CBA for a few years (my grandad had them then were given to me when he died) and they've made money, mind you the keep reinvesting in them selves purchasing more shares from the dividends.

[Rusty]

the best investment at the moment is argyle diamonds. Pink diamonds to be exact. They go up in value something like ten percent a year. And at this stage will be fully mined out within ten years. Meaning NO MORE AVAILABLE>

Supperannuation companies are even investing in Argyle pink diamonds. I travelled throughout australia with an argyle diamond exhibition and can tell you that they are a fantastic investment.

Please do some of your own research on this, i think you will be surprised'1

[minux]

I do and have done very well out of it. Short term trading does carry a higher risk commensurate with the potential reward however over a 5 - 7 year time frame the share market does out perform most other asset classes. With the recent GEC and european instability + our own Govco own goals, there are many excellent buying opportunities in the ASX at the moment.

Another asset class that has done exceptionally well over the last decade is property. Once again, it's a medium - long term investment with minimal overall risk.

Low interest in banks is indeed one of the safest investment classes however the reward is also very low and not very tax effective.

To the original poster - the best advice is to speak to a licensed financial planner who will evaluate your specific circumstances and goals thus tayloring a plan that fits in your own risk/reward thresholds etc. Nobody on this forum should be offering anything more than general advice and you should consult with your financial planner before making any investment.

Reaper

Reap, for me, I class short term as 5-7 years.

I still stand by that property is the best investment. Afterall, they are not making more land. We have made our money through property, however, you do need to have a good understanding of the best ways to use it to your advantage.

In the next 12 months I am looking to start to get into the commercial side of property, much bigger dollars and much better long term returns. For now, we are happy living mortgage free while tenants pay our super every week. Can't ask for a nicer setup!!!

At the end of the day, this has worked for me, may not work for others.

[Tree cutter]

If you put the money in a term deposit with a bank it will make it easier for you to get a loan for a house in the future. If you want to buy shares it would be best to study the markets for a while first so you have a bit of an understanding on how things work. Shares are good when things are going well but a lot of people lose large sums of money when things go wrong.
If you talk to someone at your bank you should be able to get around 5% interest with an account that you can take your money out of at any time unlike term deposits where you have to pay a fee to draw your money out early.

[Reaper]

I still stand by that property is the best investment. Afterall, they are not making more land. We have made our money through property, however, you do need to have a good understanding of the best ways to use it to your advantage.

In the next 12 months I am looking to start to get into the commercial side of property, much bigger dollars and much better long term returns. For now, we are happy living mortgage free while tenants pay our super every week. Can't ask for a nicer setup!!!

At the end of the day, this has worked for me, may not work for others.

Good luck with the commercial side of things. Just going thru the process of building a new factory now. The rewards are much higher with commercial/industrial however the risk of vacant premises for extended periods is much higher. Send me a pm if you want some tips re clauses in the lease.

Reaper

[Philthy]

As soon as you can buy a house if you haven't done so already. Mine makes more money than I do!

I'm not planning on going into debt just yet. I know people will say that rent payments will cover (or almost cover) mortgage payments, but its a bit of a big step right at the moment. Especially when I'm not in a long term job (not more than 1-2 years anyway), so secure long term income isn't guranteed.

start a business =D.
I had an argument with my old man, he said i was a piece of shit... So i moved out of home... started my own marketing company... made his weeks income daily.
Now I'm paying off my own house, and his.

Its on the to-do list, but again thats a bit further down the track and will cost me more than I can afford in the meantime

If you put the money in a term deposit with a bank it will make it easier for you to get a loan for a house in the future. If you want to buy shares it would be best to study the markets for a while first so you have a bit of an understanding on how things work. Shares are good when things are going well but a lot of people lose large sums of money when things go wrong.
If you talk to someone at your bank you should be able to get around 5% interest with an account that you can take your money out of at any time unlike term deposits where you have to pay a fee to draw your money out early.

Cheers, I might chat with a few banks as well

[piston_broke]

i can tell you the worst investment you'll ever make, and that's a motor car, unless of course you were lucky enough to get a GTHO back in 1972, and it's still in pristine condition.
Myself, i love shares, high risk, high return, [ of course ya going to lose, but it's only money, and the gains soon make up for any losses] but you're not interested in that, so i think you'll find a simple Internet Account can be right up there with most things of low risk, your money's not tied up, and you can do it without even leaving home.
A financial adviser is also good advice, so long as you find a good one, it'd be money well spent

[levymetal]

Your best bet would be to invest in the stock market. Now. All ords is down, perfect time to buy. If you want super safe, just invest in some banks. There is very little chance that a bank will just bomb out in Australia. Take Westpac for example. Currently ~$22. 3 months ago they were $28. Within 6 months (hopefully less) they will be be $28 again. That's a $2.7k profit on your $10k investment in half a year, providing you sell at the right time. I don't predict WBC will go higher than $30 any time soon though, so if you buy, my suggestion is to sell while you're ahead. You can always wait until the next time they drop to buy them again and make even more money. But even if you don't sell and decide to keep them as a 'long term' investment, the dividends alone will pay the 5% which is almost what you'd get in a term deposit anyway. And you can either reinvest or get the cash.

Say you played your cards right, and you had've bought WBC in Feb at $22, sold in April for $28, and then you bought them again at $22 now, and sold whenever they reach $28 again, you will have made more than 50% on your initial investment. In less than a year. And we're just talking banks. There's more money to be made in other areas. Of course, no one can predict the future, but I still feel like kicking myself in the face for not selling. No doubt some people got it right though.

There is always some risk in shares, but with the banks, you'd be really unlucky to lose. They are only going one way - up. Worst thing that happens is that you have to wait a while before you're back to where you started.

Disclaimer: I'm not a financial advisor. Don't trust me.