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Investment help?!

Reddy!

Bob Davidson (42)
Okay basically I want some smart fellow to give me a quick run down on what decent options I have to make the most of my savings. I'm a young guy and started my first full time job this year - I'm having some time off (1-2 years) before I go back to uni to do my masters. As of the end of the week, I would have saved $10,000 so far this year. Living at home has its benefits! What can I do with this money apart from let it sit in my bank account and accumulate small amounts of interest?

My long term goal is property, but that is obviously way out of reach for the time being. So any ideas or know how would be much appreciated.
 

waratahjesus

Greg Davis (50)
if your young and taking time off, take the money, get on a plane and go find some lovely european ladies to invest in. the money will go on alcohol and drugs, the memories will keep you going through future study and beyond.
 

Reddy!

Bob Davidson (42)
Yeh going to do that as well, but got the rest of the year now to save money for travel.
 

Jethro Tah

Bob Loudon (25)
Some things to think about:

Who is going to pay for your masters? I think it was Warren Buffet who said the best investment is in your own education. If scholarship or future employer then you lucky sod you don't need to hear my thoughts. If student loan or HECS, consider if and when you will pay it back and if you may need the money for another reason (holiday, wedding, kids, knee operation, etc) at that point in time as it may be worth paying full fees up front but if the interest rate is low on the loan you will be better off investing your money elsewhere.

Whatever you invest in, consider the interest rate or return on investment as the rate of risk. The higher the rate, the higher the risk. There is a reason why gum tree plantations in Brazil pay 10% compared to a fixed term loan at Westpac at 5% - the risk of losing your $10k is twice as much.

For investment, some people say "timing is everything" but I think it's better thought as "the time in is everything", i.e. it's not when you investment but for how long you invest for. So pick a future date when you want to buy property and how much you will need then work backwards to your $10k start.

If your long term goal is property, is that a house to live in or a rental property to invest in? If to live in then best maybe just whack it in a fixed interest bank deposit and roll it over every 3 or 5 years or so. Be careful of the terms as I got stung when putting money in one thinking the interest compounded but the bank just transferred the interest component out into another account once a year which just got spent instead of reinvested. If investment property (residential or commercial) then consider buying shares in a listed property developer then by following the company you invested in you will learn more about the market and how it works which will help you in the long run for when you buy your own investment property.

The above is just off the cuff and I am happy to discuss more in a PM if you want.

A truly loyal fan would put it all on the Reds winning the final! ;)
 

Pfitzy

George Gregan (70)
Paris Tah said:
A truly loyal fan would put it all on the Reds winning the final! ;)

I prefer wj's option for blowing all your cash with nothing to show at the end ;)

Solid term deposit. Or buy shares in a bank right now - they're a bit low due to the dirty Greeks but they'll bounce back, because they're banks.
 

liquor box

Greg Davis (50)
Reddy! said:
My long term goal is property, but that is obviously way out of reach for the time being. So any ideas or know how would be much appreciated.

That depends on if you are buying property to make money or to eventually live in. Remember if you are investing then you can buy anywhere in Australia. (if you choose a city you like to visit you can make tax deductable inspections that coincide with Rugby games)

there is plenty of opportunity in the country too.
http://www.realestate.com.au/property-house-qld-blackwater-404556696 this is renting for $600/week for a 3 bed, 1 bath house in Blackwater


that makes this one look pretty good- http://www.realestate.com.au/property-house-qld-blackwater-106311383?activeSort=price-asc

it is 5 bed, 2 bath and only $380k so as an investment it could be a great buy, the only issue is if the mining boom ends.

look to the country and there is still value to be found
 
T

TOCC

Guest
ive invested in the share market over the years, i have dabbled in options but im away with work for long stretches and dont get the chance to keep updated..

You could take your $10'000 and spread it across a few blue chip companies on the share market, but it depends how much risk your willing to take, the share market is pretty volatile at the moment with the european soverign debt issue.

Alternatively, like someone already suggested, you could put it in a fixed term deposit for a few years
 

Moses

Simon Poidevin (60)
Staff member
Is Rudd's first home buyers savings account worth looking for? Very tax effective if you're in a higher bracket, with govt contributions i'd be interested to calculate effective interest rate.
 

Dismal Pillock

Simon Poidevin (60)
https://www.reddit.com/r/wallstreetbets/

https://taibbi.substack.com/p/suck-it-wall-street

Needless to say I have NO BLOODY IDEA wft is going on with this but it sounds fascinating. Hedge Fund Millionaire Wankers Getting Down Trou'd by Reddit Nerds

as far as I can work out;

Hedge fund millionaire wall street wankers called "Melvin Capital" "borrow" shares to sell. They plan on reselling the shares (in shitloads to lower the price?) to bumfuck "GameStop" a poxy little company who they give no shits about. Stock price goes down, down, down and they plan on selling it when it gets super low and then pocketing the tidy difference since they were just "borrowing" the shares (no idea wft that "borrowing" shit is about).

Except some nerds on reddit got together and started buying all the shares too and now the hedge fund deadshits are on the hook to the tune of billions for the shares they borrowed. They were supposedly worth $6 each..... but are now worth $340 each.

Oh dear.

The reddit dude who started it with a 50K investment is now worth 22 mill. (But does this money even exist or is it just numbers moving around like in that movie "The Big Short"?)

So then the hedge fund fidoucheries heelspin 180 and squeal "um please can we please changes the rules of the game now please, we're supposed to win at this thing pleeeease....."
 

Dismal Pillock

Simon Poidevin (60)
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Dismal Pillock

Simon Poidevin (60)
Sounds like if the Redditors can resist the urge to "sell high" (technical term, try to keep up) then the big baddies are rooted.

Also, unfortunately for the callous hedge fund fucks, it seems to be a perfect confluence of personal for the redditors. Stuck in shit economy with fuckall stimulus $$ + the generation with vivid memories of the heartless bankers casually wrecking their family's lives in 2008 + even the choice of company itself, "GameStop", eliciting fond memories of their dweeb childhoods = Recipe For Hey Go Fuck Yourselves Arseholes.

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The_Brown_Hornet

John Eales (66)
Can't say I have a lot of sympathy for the hedge fund managers in this case, as it appears they've been outplayed. This is, of course, assuming that nothing actually illegal has been done. I do enjoy seeing short sellers take a bath every now and then.
 

Dismal Pillock

Simon Poidevin (60)
Can't say I have a lot of sympathy for the hedge fund managers in this case,

Who on planet earth would ever have even a scintilla of sympathy for hedge fund managers in any case?

Even other hedge fund managers wouldnt ever have any sympathy for hedge fund managers.

Love how they speak their own language on r/wallstreetbets. "Paper hands" vs "Diamond hands", "Hodl"

Is "retard" an anagram for "trader" gone wrong?

 

The_Brown_Hornet

John Eales (66)
Well yes. I used to work in investment banking on tech for trading etc. There are some absolute wankers working in that industry, but some good 'uns too. Hedge fund people are a different species, but like most actors in a market they serve their purpose.
 
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