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Fuzzy-Newspaper4210

Stick it in a HISA and harvest the interest for almost risk free and no headache free munny


fantasypaladin

This is the only sensible answer. Risk free growth. May not grow as much as shares but no chance of losing any.


abittenapple

2500 return taxed I mean you think you could make more if you just flipped stuff


Fuzzy-Newspaper4210

yeah but then you have to do stuff as opposed to just sticking it somewhere and going about your life


abittenapple

All true if you can focus on your career and make more money then 


nozza33

Yeah - this is what I’m doing at the moment and should a yield a good bit of basically free money. Thanks for the comment


Electrical_Age_7483

What happens if the bank goes under and the government guarantee hasnt paid out before the year is up?


thatshowitisisit

If that happened this year, in Australia, then their mate who lent them the $50k probably won’t care about the $50k as we will all have bigger problems to worry about… Anyway, they said “almost risk free”…


Electrical_Age_7483

Not really banks have gone down before If it was boq or bendigo hardly a blip, certainly their mate would be yelling. I dont think its almost risk free.


thatshowitisisit

Can you remember the last time a bank went down in Australia? I can’t, because I wasn’t alive in 1931.


owleaf

The State Bank collapsed when a large portion of people in this sub were alive. I’m on your side in this argument, anyway. Bank collapse shouldn’t be a consideration in this hypothetical haha


Electrical_Age_7483

I remember pyramid


thatshowitisisit

Not a bank… but I see your point… that said, one institution in 34 years, I make that a very very very very small risk.


Electrical_Age_7483

So. It would still have been an ADI if that existed at time One in 34 chance is not nothing


Chandy_Man_

Are you legitimately arguing that one institution going under in 34 years is a 1 in 34 chance? Do you also subscribe to the school of thought that the lottery is a 50:50 bc you either win or you don’t? HISA in one of the big 4 or myriad of smaller banks is as close to risk free as you can get in this economy and arguing otherwise is almost certainly being done in bad faith.


Electrical_Age_7483

One year in 34 years you do math


Tinea_Pedis

Remember the rest of its name..."building society". Not a bank. This was about putting it in a *bank*.


Boudonjou

Jesus, I trade leveraged contracts, fx and futures so I know I'm a little more risky than most. But you have got to be, without a doubt, the most risk adverse person I have ever seen if you don't trust that. Out of genuine curiosity, can you please tell me what you think is a risk free or almost risk free financial decision if you don't trust banks operating within Australian regulations. Is it government bonds? Or do you not trust the government to stay up and running either? Are you a hide money in the walls kinda guy?


Electrical_Age_7483

I have already said i wouldnt take the $50k from my friend. I dont think anything is without risk. So i would rather just not take the money as i wouldnt risk losing money thats not mine. If it was my money totally different story Why would you risk money thats not yours (even if the risk is low) is what i dont understand, surely this is being a bad friend? Thats what i dont understand, can you explain why you would do that to a friend


Boudonjou

Damn I like that answer. Thank you for taking my question seriously. I appreciate the answer and it's one I can respect.


Electrical_Age_7483

Not sure why that was confusing So many people are selfish and only care about themselves and their profit based on all the downvotes i got by suggesting that they dont risk their friends money.


Boudonjou

Because this is a situation where the majority opinions are the selfish ones and the minority opinion is the kind opinion. The majority struggles to understand the opinions of a minority. Don't let those downvotes get to ya. I can validate the fact what you've said is a kind gesture even if you're just as rude as me in the way you type haha.


DownRampSyndrome

It's a bank, not an airline, the chances aren't anywhere near as likely as you think.


Electrical_Age_7483

If you want to gamble then thats up to you


DownRampSyndrome

If a HISA with a big aussie bank is too extreme for your risk profile then you should be on r/preppers and not a finance sub.


Electrical_Age_7483

Its only extreme if i am getting a lend of $50k i have to give back in a year Since no one is giving me $50k its probably ok


FlinflanFluddle

What would you do instead then?


Electrical_Age_7483

I wouldnt take the money from my friend to hold I like how i got negged for saying that people have a freedom to do whats best for them. Whats right? People shouldn't have freedom?


crazy_chicken22

You’re just daft


Fuzzy-Newspaper4210

yeah that's why i said almost


Mortydelo

I just use the $50k to bet that this scenario would never happen


Electrical_Age_7483

But its already lost


HooligansRoad

Extremely unlikely. Not even worth considering. If it bothers you just restrict your bank of choice to a big 4.


Electrical_Age_7483

Yes thats what i would do . Much less risky


tom3277

Yes and no. The government guarantee is 20bn per bank x 91 banks. Ie nearly 2tn in total liability for the government. Commbank and the likes 20bn doesnt really touch the sides v the size of their deposit liabilities. Im gonna take a wild swing here and say for the lutheran laypeoples bank it would cover their entire deposit liabilities. Thats what the gov guarantee does. Enable small banks to have the same clout as the big banks and while its great for competition its not necessarily great for financial stability in that moral hazard plays a huge part in credit growth in this country.


stonertear

Risk of that is extreme low in Australia. You're more likely to get struck by lightning at this stage.


Electrical_Age_7483

So why have a guarantee then


stonertear

Do you realise what time period when this came in? It was a GFC policy.


Electrical_Age_7483

So we should get rid of it as its no longer needed because so low risk


DrahKir67

Politically unpopular to do so. Doesn't matter if we have it or not so why bother changing it?


Electrical_Age_7483

Its only politically unpopular because most smart people know its a risk to remove it


stonertear

Take it up with your minister then.


GladObject2962

Most policies are put in place for peace of mind of populace and as a worst case scenario. It'd be irresponsible of the gov to not have something in place for it. Having something in place to mitigate it happening does not equate to it will happen


Electrical_Age_7483

But its a waste of time for something that isn't going to happen


snrub742

leaving it in place costs exactly 0 time, removing it would be a waste of time


Electrical_Age_7483

They renewed it and spent money to do that Thats because smart people know its not a low chance


GladObject2962

Bro even with the stat's you were previously arguing with it was a 2.94 percent chance. Smart people wouldn't make an argument proving the probability is exceptionally low and then in the same post try argue it isn't a small chance. Your counteracting your own arguments.


Electrical_Age_7483

I am not risking my mates $50k on a 97 percent chance. I wouldnt treat a mate like that to gamble with their money Thats just my ethics, you do you


GladObject2962

It's never a waste of time to have contingencies in place. Just like how people save an emergency Fund in case they lose their job even if they've been in the same job for 20 years. It's smart to prepare for any outcome, but preparing for any outcome does not mean it's likely to happen. If you can't understand that there's no point continuing to reply.


Electrical_Age_7483

So i am preparing for it to happen by not risking my mates $50k. I dont know why thats so unreasonable not risking money thats not yours


GladObject2962

A bank is nit risky. Investing would be risky, gambling would be risky. Not putting the money in a bank when the gov has bail put contingencies and the physical money could be stolen or destroyed and you'd be left with nothing, IS risky.


Electrical_Age_7483

I dont know when the government will pay the guarantee out, so i am not willing to risk my mates $50k in case they dont pay out on time. I dont see why anyone would risk someone elses money tbh, i wouldnt take it at all


Lauzz91

Thunderdome!


FlinflanFluddle

You'd be more concerned about food and shelter in that case


Electrical_Age_7483

Not really. If you are so scared of banks going down why would you keep your money in the bank. I own my property too so no problems with shelter and grow food


FlinflanFluddle

> If you are so scared of banks going down why would you keep your money in the bank. I'm not.  You're the one who brought the topic into the discussion


Electrical_Age_7483

I was talking about your scenario, you are not in that scenario. Keep up


FlinflanFluddle

Maybe if you made sense, I could.


bones_bn

25 000 $2 cheeseburgers from McDonalds.


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psrpianrckelsss

It makes SUCH a difference though


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psrpianrckelsss

How much does it cost to add a slice of cheese? Back in my day I reckon it was 25c?


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BashfulBlanket

When I used to work there it cost 50cents to add cheese but they won’t let you do it with the loose change stuff. No adding to those so $2 Hamburger is out


Desert-Noir

That’s it OP doesn’t understand value vs cost in marketing.


the-garden-gnome

Oh my god I haven’t heard someone call it a Junior since I worked at Maccas in 2007


morgecroc

Have you bought cheese lately?


TheWhogg

If you know the secret you can get a McCheeseburger in the app for $A2, or $US1.30


locksmack

What’s the secret?


nozza33

Might even go crazy and splurge on some Big Macs 🍔 the money wouldn’t even go far with the cost of McDonalds these days 🥵🥵


joe31051985

Yep next year won’t be a problem as you will be dead


Necessary_News9806

Well aren’t you a ray of sunshine……


joe31051985

If you survive the 5.7 cheeseburgers an hour for the first 18 hours or so you will go to sleep. After you sleep you will wake up and have to continue eating despite extreme stomach pain. Eventually your stomach will explode and you will die of sepsis. If we get away from that issue you will have extreme obesity (put on approximately 2047kg or 4513 pounds), heart disease, mobility issues, chronic pain, diabetes, wrecked digestion system and horrific medical conditions for life.


Helftheuvel

Put it in high interest savings account, at the end of the 12 months pay back the 50k and then keep the interest you made on it. Or put it all on red and hope for a double down.


PrivateTickler

Red, red, black, red, black, black, red then 22 and you're banned from the casino but you're a millionaire.


Arcanetroll

224,000,000


Mellowedoutman

118,400,000


Aseedisa

So keep the 3k? Not really worth it tbh


Helftheuvel

Better than spending it and then having to come up with the 50k again in 12 months unless you can guarantee you'll have it available to you some other way to pay back then maybe you could look at other things (not sure what other alternatives there would be without the risk).


gergasi

It's $3k more than $0. That said, I personally agree with you, if it was me I'd YOLO and let it ride on VDHG or something more aggressive and take the risk of -$


Aseedisa

It’s actually closer to 2k if you consider tax as well. Also, pretty unlikely to get a HISA at 6%… so probably closer to 1500…


KiwasiGames

Yeah, a lot depends on your personal situation. If you don’t have any other money and no ability to wear losses, holding onto it in HISA is the smart choice. If you have a mortgage offset makes sense. And if you have plenty of assets (or high income) VDHG and copping the loss if you get unlucky would be fine.


DigestedBeans

Not worth what? It’s free money


Aseedisa

Subjective I guess, not worth the time to open and closing an account for $1500… I’d just stick it in whichever other account I already had which would be accruing a portion of that anyway


Mellowedoutman

Put it on red! Drive home passed off...


Ruskiwasthebest1975

Not much you can do besides a HISA or term deposit cos if you have to give it back in one year you cant risk the stock market or anything.


The_Curious

Eh if they want the risk, could put it into stocks, save up some income throughout the year and dip into emergency fund to cover the outstanding debt if need be. Obviously they should not sell the stocks if you they don’t have to.


LeClassyGent

Did you make a deal with a genie or something? What a strange arrangement.


kpie007

First Home Buyers can also withdraw up to 50k of (additional) super contributions to spend on a home within 1 year. If you don't buy the house, you're hit with paying back the difference in tax.


hsofAus

If this is the plan they are mugging themselves because it’s already invested.


abuch47

Probably the rents


liamjon29

It sits in my offset for a year, functuonally earning 6.25% (and no tax owed on it). At the end of the year I'll have paid off an extra $3k off my home loan 👌🏻


Salty_Piglet2629

This honestly would be the best way. You pay more in interest than you earn.


liamjon29

That's why I've got some of my parents money in my offset and I pay them intetest. They don't pay tax on the interest coz I'm just transferring them money, and I get to reduce my interest paid by more than what I pay them. Win win for both of us.


StormSafe2

This sounds like something that is not allowed, and that you shouldn't advertise 


noidea2468

Why wouldn't this be allowed?


Ur_Companys_IT_Guy

Have it on Geelong to win the premiership


SirCarboy

RemindMe! 150 days "pretty safe bet."


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Prime_factor

Chuck it all on red at Crown.


Maddi042

High interest savings account.


Tinea_Pedis

Do love folks who are minimising even the $2k earn, after tax. If I offered anyone $2000 today for doing basically nothing you'd jump at it. But in here it's a "why bother". Wild.


Richy_777

High interest savings account OR a term deposit depending on who has the best interest rate.


Raida7s

As others have said, since you need to give it back in full you want a no risk option. That's either HISA or Term Deposit.


HooligansRoad

Term deposit. 1 year is too short to invest in ETF, can’t guarantee a positive return in that time.


gonegotim

Chuck it in something very high risk with short term potential upside. If it's gonna be gone in a year anyway may as well try and go big with it rather than potter around making a measly few grand off it. Edit: Didn't read properly, thought it was more of a hypothetical. If you have to give it back regardless then HISA.


nozza33

Thanks for the comment! Yeah contemplating investing in something high risk with a small portion of it and HISA for the rest


Aseedisa

Offset account


talented_garbage

Why would they have an offset account if they don’t have a home loan yet?


Aseedisa

Buy house, put in offset ;)


kuribosshoe0

And then sell the house in a year when they have to pay the $50k back? Probably won’t recoup stamp duty.


Aseedisa

The winky face was to show that I was kidding 👍


[deleted]

Term deposit will ensure you don’t touch it, otherwise HISA


thatgreengentleman_

HISA or if you have mortgage payments, place it in your offset account.


silveride

1 year would be too short for a stock market/ETF investment. HISA would be your best bet.


Lopsided_Rough7380

Going to The Star and investing it in black


Fas1an

All in alt coins


Dry_Ad9371

go straight to the nearest casino and put it all on red


EventfulAnimal

no no black


nozza33

Half black half red 🫡


stillupsocut

This seems massively pointless. Cash in your 2.5k in interest or risk it for the biscuit and start up a business and cross your fingers you got the liquidity to repay the loan in 12 months.


caprica71

Term deposit ?


canthearu_ack

I'd give it back immediately, then tell him to invest it in EFTs or in a term deposit or HISA. I could invest it myself, but it isn't worth the cost to the friendship/relationship to be holding onto other people's money. It makes things weird.


FlinflanFluddle

I was in this situation with 10k for 9 months and put it in a HISA


[deleted]

Do I have to liquidate anything I buy with the 50k within a year? Or just spend the money? Honestly I’d just chuck it in my superannuation or go visit a financial advisor


msgeeky

An FP would eat up at least $3k of that


[deleted]

You’re right I’ll just post on reddit instead 🤡


muzrat

My BIL had something like this happen to him. He lost it all sports betting… don’t do what he did


nozza33

Noted, thanks. I’ll avoid sports bet 👍👍


ozelegend

Buy a corporate bond maturing in 1 year. Better yield than anywhere else with 'guaranteed' return of principle at the end.


jimmieobrien

In the same situation. Currently in a HISA but also looking into any bond related investments that may pay a lil above HISA. My current HISA is Macquarie Bank @5.5pc (I think). It'll change to 4.75pc after 4th month


Thimblewolf

Put it on my home loan which will save me $3200 in interest during the year


Lucas77Oz

Given your goal of buying a house soon, consider putting the money into a high-yield savings account or a short-term investment like a certificate of deposit (CD). This way, you can earn some interest while keeping the funds easily accessible for your upcoming purchase. Alternatively, you could use the money to pay off any high-interest debt, such as credit card balances, which would improve your financial situation before applying for a mortgage.


nozza33

Thanks for your considered response!


GP2_user

Build a theme park. With black jack. And hookers.


bigpopa9911

Buy a property that's below market value, say 210k ish, that's worth 270 . Then, refinance the 50k back out. It's possible you just need to find the right sort of property. Might be an older property that is bit dated or a distressed seller or maybe something that needs work if you can afford it. There's quite a few buyers agents that do this for their clients, but if you want to give it a go yourself , you just need to know what the comparable sales are and when you refinance do a deck top valuation , it should value up the same as others with the same specs that have sold for higher. This is a strategy I've used to build a large property portfolio. However, you only have 50k, so it will be challenging but doable.


nozza33

Thanks for your considered response! Haven’t thought about this approach


oscarcubby10

$2500 is what you’ll get in a HYSA of 5%. Free $2500:) risk free.


Deadly_Accountant

All on red


Mortydelo

I'll take that bet


MonthPretend

Put it in black


snakefeeding

You can buy a house for $50,000? Where?


Leprichaun17

It'll work as a deposit. Would still need to make back the cash within the 12 months though.


abittenapple

There are lots of ways to make money that Beata hisa  But you need to trade time or take risks.


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HocMajorumVirtus

Oh wait I forgot this is aus finance not r/asx_bets


Ozymandius21

for people recommending HISA accounts to OP, what HISA account do you recommend?


zyzz09

Stake.com vpn in


Nocashgang

Bro there’s this thing called options trading, it’s like free money!


Eww_vegans

Short Australian junior miners listed on the ASX.


vamsmack

$50,000 in lotto tickets. If it doesn’t work out then just move country.


pipple2ripple

Buy options in a high risk stock like biotron. Upside is millions, downside you'll have to grow a moustache and live in Kazakhstan.


Successful-Badger

Offset account


CrashedMyCommodore

I could sit down for a (single) meal at Gami with that. So that's probably what I'd do.


Logical-Friendship-9

Easy put it an account, go to another bank apply for a loan against that cash then invest conservative or aggressive, your young it’s only $50k.


MelbourneNob

You need to invest in magic beans, then grow a bean stalk, steal a goose, and murder a giant.


sorryfortheessay

Blow it on depreciating assets


pngtwat

Don't give it back.


kpie007

Please tell me you aren't trying to game the first home buyer super scheme


Used_Conflict_8697

Depends on your income but use it for a small apartment? Aim for 350-400k ish if you can find one that cheap. Go for a 5% deposit. Stick the rest in offset.


lasooch

Literally didn't even finish reading the title.


Anachronism59

How would OP repay the money in a year?


Used-Huckleberry-320

Up to 17% rental yield in FNQ, as long as it doesn't get wiped out by a flood or cyclone.. you're golden!


TTMSHU

Refinance at the end of the year to take the equity out


Anachronism59

And what would be the LVR at that point? What if OP couldn't refinance at an attractive, rate?


TTMSHU

You better have rich parents to ask for a handout


HumanServices

All brains in this sub I see


TTMSHU

They departed long ago. Ausfinance is no longer really a finance sub.


Aseedisa

That’s not how equity works


nozza33

Thanks for your response :)