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nabraxas

investment

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imagine you were 44 years old & unemployed.

you get a windfall of say $500,000.

You only have 16 years until you get a pension, so you could just spend $600+ a week & not worry about investing.

Some of the banks offer upto 7% interest on large term deposites.

That gives you $35,000 a year or again, roughly $600 a week. (if my sums are correct.)

But do you think the banks are a safe place to put that kind ov money, will there be a huge crash? Or is that paranoid?

The Govt. only guarantees deposits upto $250,000.

You could always invest in property, but the housing market seems over priced & in decline at the moment anyway.

What would you do w/the money?

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Wouldn't it be guaranteed if you split it into 2 x $250k and put them into seperate institutions?

"Separate arrangements will continue to apply for deposit balances totalling up to and including $1 million per customer per institution and changing to $250,000 from 1 February 2012. Such deposits are guaranteed without charge." http://www.guaranteescheme.gov.au

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You could buy a few Limo's and get a bunch of whores working for you and start your own "hire car" business.

That way you'd have a legit business that turns a good profit or cuts a good loss whichever way works out the most lucrative.

That would gobble up a few hundred grand so you'd have heaps left over for cocaine and ecstasy etc.

That was my ambition at high school, but I got sidetracked somehow and it never eventuated.

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edit: LOL Sally D ^

You could buy a big block of land, within 30 mins of a small town. Grow tomatoes,herbs and other fruit and veggies for the markets.

People will never stop buying fresh fruit, veggies & herbs.

But beware, the government doesn't like people like that, they are far less likely to bust their ass in a factory all day if nature is providing for them.

Oh and stay out of debt!

Edited by Halcyon Daze

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Wouldn't it be guaranteed if you split it into 2 x $250k and put them into seperate institutions?

yeah, that's the way i read it as well, but then as soon as you're paid interest, it takes it over the $250K, so is it still guaranteed?

& if you're thinking that way, does that mean you think that the banks are not a secure investment at the moment, without that guarantee?

i'm not based in a big city so there's not really much call for escort services, though i do like the sound of it.

You could buy a big block of land, within 30 mins of a small town. Grow tomatoes,herbs and other fruit and veggies for the markets.

fuck that, i have a hard enough time looking after my own backyard veggie patch, anything on a large scale would be too much like working for a living :wink:

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I think (without doing any extra research) that the guarantee covers the first $250k, but anything over that isn't protected. I personally think the banks are safe as, but would still diversify that much money over a couple of institutions. Plus you get a free guarantee from the govt! You don't get much for free these days.

I'd also chuck a bit ($50-$100k) into a managed share fund too for shits and giggles. Have you considered extra into super?

Good luck with your endeavours.

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the australian economy and therefore banks will be safe for at least the next decade due to the mining industry, so your 7% interest or whatever is pretty certain. whether or not putting your money in a bank is the best way to make use of it is another question... by putting your money in banks you are financing the great capitalist machine (i.e.. they will re-invest your money in news corp and bhp so you can help brainwash and pillage australia).

Edited by kalika
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Imagine if an alien came to our planet. Now imagine u try to explain to them that we use little peices of paper/plastic or non valuable metal for money. No, no... U see, the paper has numbers printed on it.... Starting to sound bad isn't it. No, but sometimes we use these bits of plastic, which link to accounts where we have numbers stored in a compuer database. Here, I'll swap u these numbers, they can go from my bank account to yours- instantly. How much value do these numbers really have? Well, thats an easy answer, atm they are worth 1AUD per 1.00 numbers I have. But wot about when the us debt can only be ridded by printing mass amounts of cash, effectively devaluing the USD. Many other countries are in the same boat.

I would personally suggest staying way out of the share market for atleast the next few years. Property is at a very low point, so prob a great investment/ time to buy while it's cheap. If u are a gambling man, I'd put a good chunk, 10-15% into precious metals. Many analysis rekon AU will be at $5-10K per Oz in the next few years and silver to break over $100 an oz in the not too distant future either. The certainly do not think they are going to go down anytime soon. If they do crash, all u have to do is wait for the next big world fuck up and prices to skyrocket and sell. They say that AU and AG don't reallymake u money or shouldn't be used that way. But they rather store money and keep it's value constant. $1 now will buy a lot less in 10,15,20 years time. But precious metals will remain constant and wat u would be able to buy now for $1 worth of gold, u will still be able to buy for $1 worth of gold value in the future.

Did I explain that Ok?

Peace

Naja

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i'd split it between greek, italian and spanish government bonds

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i'd split it between greek, italian and spanish government bonds

yeah, i'd thought about that, but i might wait until the market becomes a little more stable :wink:

i've looked at precious metals, but i'm not convinced.

i guess a better topic would have been a pole as to how many think banks are a safe investment.

kalika: i totally agree that banks are scum that invest in the arms trade to make their money.

i didn't have a bank account until 25, & then only to get paid.never had a loan, credit card or mortgage.

i'd rather not have anything to do w/finance, but i'm in a position where i have to look after some part ov my future & a term deposit seems like a better idea than buying shares in Halliburton

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I certainly wouldn't put it into property for the next few years, Australian Ponzi, sorry I mean property, is on a slow melt if we are lucky, but still no capital gains to be seen for the next 5-10 years, its anyone's guess. All the fast money inflating the property bubble is spent, no one has the appetite for massive debt any more, and no new purchases at the bottom means you can no longer cash out at the top, as there is no sucker (First Home Buyer) to fund you the way there once was. -5 % a year on an investment is not a good investment.

Telstra have guaranteed 28c per share ( I believe it fully franked as well ) for this and next year, and seems to be one of the only decent stock that is increasing in value as well.

As much as I despise the Big 4 banks, who are always reporting ever expanding profits, you will get better yields buying their shares than they will pay in bank interest, however a lot of bank stock seems to be treading water or falling. Assuming there is an end to the turmoil bank shares make some kind of sence although in the economic climate it might be 5 years or more before you realise whether you have made a good play or not.

You could short the AUD in anticipation it will fall below USD 90c and take a nice 10% profit. Although until after the Greek elections who knows what will happen. I'd keep an eye on American election dates as well.

If the world does go into financial free-fall then gold could be a good hedge against depreciating $ but it doesn't provide any return unless the price goes up.

China could be in for a rough landing with their own property pop which would leave Aus in the crapper.

If I had that sort of cash, I would put it in a high yielding account and read the blogs at www.macrobusiness.com.au for 6 to 9 months before making any decision.

I have been reading them for about 9 months ant it is probably the only source of financial information I would put any heed to.

What little savings I have are sitting in the bank waiting for the bottom to become apparent, but everything seems to still be falling.

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actually i don't think gold is the sure fire bet many think it is, it's gone down quite a bit in the last 6 months or so,

still probably a safer bet than many other options, but i wouldn't know,

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I wouldn't trust gold either. Gold can slide as fast as it climbs. Plus the government can even legislate to make it illegal to own (eg in times of warfare).

Plus everything you hear in the media says BUY GOLD NOW!!! don't trust it.

Forget chasing easy money, you'll lose it all like soooooo many other suckers.

Go with the safe bet. BUY LAND!!! Build a shack, grow some herbs and peace out for the rest of your life like a champion!

Edited by Halcyon Daze

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If I didn't own my own place outright, I'd pay it off. If I did own it, I'd upgrade to more land and more comfort. Set yourself up for retirement. That's safe comfort if you are not fussed by money.

If you want to set yourself up for a bit more spare cash for the future, then speak with a good financial advisor. There are safe investments, just don't put all your eggs in one basket.

I assume this is the life insurance money, what would she want you to do? Did you ever have an "Imagine if we won lotto" daydream together?

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Buy a lease on some land in Vietnam and live like a king for the rest of your life.

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Did you ever have an "Imagine if we won lotto" daydream together?

yeah, & for the last 3 years we were living it. Our own, paid for, home in the country, near the beach, enough ov a garden to grow veggies & stuff...no amount ov money could ever bring that dream back.

Thanks for all the ideas peeps.

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i totally agree that banks are scum that invest in the arms trade to make their money.

i didn't have a bank account until 25, & then only to get paid.never had a loan, credit card or mortgage.

i'd rather not have anything to do w/finance, but i'm in a position where i have to look after some part ov my future & a term deposit seems like a better idea than buying shares in Halliburton

building societies and managed funds that special in ethical investments might be a good alternative to the major banks.

More importantly, if you make sacrifices for your local company to stay afloat you are not just helping yourself, but you are helping your local community, your neighbours, your family, your friends. Again, what good is it to own shares in westpac if all the bank does is to suck money out of your community and take it overseas? Invest in your local building society and buy shares in local businesses if you really want to make your money work.

link to thread

Edited by kalika

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I would educate myself on the share market and when we have the next imminent GFC buy up dividend paying shares.

Commowealth bank was available at a price that paid 10% return tax paid.

Dividends also tend to go up over time so the dividend stream you purchased would be hedged against inflation and if only bought franked shares you would pay little or no tax on money.

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I'd start a skilled labour business

There are many available streams of cash you can tap in to, easier than you may think

If you pick the right industry, you can land yourself in a position of reliable high returns for decades to come

One fine example is getting on board with the National Broadband Network

This would involve the following:

-register yourself as a pty ltd company, and attain relevant insurances (workcover, public liability, tools and trade)

-purchase vans and tools

-employ technicians with relevant experience, and provide any training to attain necessary qualifications if they don't already have

-secure a contract with one of the companies managing the customer side of the rollout

-your outgoing would approximate 15% of earnings

Each technician should pull in $100k/yr without breaking a sweat

To put things into perspective:

-NBN involves every house in Australia being attended to and in most cases several wiring tasks will be required

-An estimated 60,000 technicians are required to complete this task, there are currently only 40,000 registered cablers in Australia

-So long as Australians have a need for telephone and internet services in their home, there will be an infrastructure to maintain

-This infrastructure will always be maintained by contractors

You know how much electricians and plumbers can make, right?

Well, they have to do four year apprenticeships before they can earn this kind of money. Cabling technicians earn very comparable rates, and only 1-2 months of training is required to get them on the tools independantly. Choosing employees with relevant experience (antennas, local techy telephone and data point guys, ex foxtel) will be a huge head start on their earnings

If you'd like to know in more detail then feel free to ask :wink:

Also, and most importantly, how would YOU like to spend your days?

Edited by Coschi

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Also, and most importantly, how would YOU like to spend your days?

That's a tough question to answer at the moment, but i can say that it wouldn't be setting up a business, too much stress.

But the idea ov getting in early on the NBN is certainly a good one, infact maybe you should delete that post before someone more entrepreneurial than me steals the idea :)

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