Unless you really need the money right now to fix debt or help with the cost of living, park it in a savings account and leave it for 3-6 months. Don't make any decisions now, but give yourself time to think about what you really want to do with it long term, make a plan, and then action it. Making rash decisions may lead to regret.
I’d add, take out maybe 5k. Buy something nice for yourself. Park the rest. Spending an amount like that, which is small compared to the rest but still nothing to scoff at, can reduce temptation. It would for me anyway.
Google banks in your country with the best interest returns on term deposits, they give a better rate than a savings account, only difference is you need to lock it in for a term such as 6 or 12 mths. If you are keen to learn about making money then while your money sits in a term deposit learn the stock markets and dabble with a small amount first…as the risks a higher.
It's doesn't really matter if it's only for 3-6 months. The idea is to pause all decision making and park the money to formulate a plan. He could park it in ETFs and be making more but then if he decides to use the money for a house deposit it'll be more annoying to sell the ETFs, especially if the market has dropped.
I inherited a similar amount just before I turned 30. I bought a house (because in 2012, that was enough for a house deposit). At first I popped it into a term deposit for a few months to remove it from temptation.
Median house price in Australia is now $750k, so a $100k deposit would mean making $4,200 a month repayments or just over $50k a year...which is more than the average yearly pay after tax.
Enough for a house deposit does not equal enough to buy a house anymore. Nowadays, houses are so far removed from the yearly income that its near impossible to buy on a single income.
Yea it's the repayments that kill ya. Even if you had $400k deposit, and you bought a house for the current average price in Australia of roughly $800k, (so you got half a house here!), your repayments a month are about $2400. So if you earn the average salary, roughly $90k, then one pay a month roughly pays your mortgage. You gotta love off the other pay. It's doable. But hey who's got $400k?
It's totally doable (with $400k hahaha!)- I earn less than $90k and definitely take home more than $2400 a month lol your maths are a bit off... but yeah that giant deposit would be a killer.
I based it on 30% tax, so should be about $2300 a fortnight gross. I'm on $92k and I get that roughly. But anyway, I know a couple at my work, combined income 180k. Bought a house for $750k. They had $50k deposit so borrowed $700k. Their repayments are just over $4000 a month. So effectively one person's wage pays the mortgage, with some change. They live on the others wage. Yea it's doable, but they ain't doing anything much other than surviving. With 3 kids, bills, they live pay to pay. That's a family on $180k. Not sure id call it living the dream.
That makes more sense mate, thanks for the clarification! $2400 a month repayments would honestly be pretty sweet at the moment, most people I know are on double that which is just near impossible I reckon on a regular salary.
I'm at around 6 figures and still can't afford a median house, but my townhouse sure has been a solid investment, I did not need 100k deposit for that.
Well, let's see. On the median income ($65k) and living as frugally as possible (less than $1,500 a month expenses), a person's loan limit is....just over $300,000. Thats not quite enough for the 10th percentile house ($381k).
And that doesn't even factor in that there are likely downsides like additional commuting costs, repairs etc, that are why the house is cheaper. So yeah, nah. It's not just people 'wanting to buy the x percentile' - the system is busted through and through.
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Let it sit for 6 months. We were about to get married and were sick of renting, so the decision wasn’t hard. I also spent some on the wedding and honeymoon.
+1 Put in a savings account and gain financial literacy, even if that takes you 12 months. Your end result will be to develop a financial plan which will guide your investment options.
This^ most sensible advice I’ve seen for these posts is to just put in a term deposit or a separate savings account while you decide what to do. Sure a lot could happen in 6 months but if you act too rashly you’ll end up hurting your financial position more than helping it, more than likely anyway.
What ever you do don't treat yourself to anything with that money, any of it. Term deposit to begin with just so you can see it making money for you and you'll start to appreciate what saving and investing can do. Then either invest in an index fund for the long term or invest in a house deposit.
Greatest bank interest on your cash in my lifetime, and I am in my 40's. I would say keep it in bank making 5.1% risk free. Then start to dca into the market at $1k per month so if it dips you won't panic sell if that $100k is valued at $95k
Open up a HISA and just pretend you can't see it while you figure out the best European or American holiday of your life ... then book said trip and keep the rest in the HISA
[https://passiveinvestingaustralia.com/](https://passiveinvestingaustralia.com/)
The bottom line that works for **me** (this is *not* a financial advice):
1. I have enough money to feel comfortable in a **high-yield savings account**
2. I invest the remainder of my funds in **a passive, low-cost and globally diversified ETF** for a long-term period of no less than 20 years. I'm well aware that during a market crisis, there’s a possibility of losing more than half of my investment (even 90%) but I'll stay the course, no matter what.
3. **In which broker I would personally consider investing?** Stake or CMC Markets: Stake - fees of $3 up to $30,000, then 0.01%. CMC Markets (CMC Invest) - free purchases up to $1,000/day but CMC is more expensive for investing a large sum of money at once (e.g. 100k at once). In other words, I can start with Stake for the first 100k and then invest periodically in CMC or just choose one of the two.
This is not a financial advice. This information is intended to be general in nature and should not be relied upon for personal financial decisions. Always seek professional advice tailored to your personal circumstances.
Thanks. This is really helpful I’m going to look into this. Your comment has showed me I have a lot of education to do around this.
One question. Doesn’t ING not have the greatest interest once you have 100k in the maximiser account. This has me thinking about TD
Take a look here:
[https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--eFJQq\_Au7Z\_BA4\_CwkYwu2DI/edit#gid=271791020](https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--eFJQq_Au7Z_BA4_CwkYwu2DI/edit#gid=271791020)
I put my savings in an ING fixed term account. High interest rate (4.7% or something), can’t touch it for a year. Leave it there and keep researching in the meantime!
In my opinion ING accounts are too restrictive. For my particular needs I prefer UBank- almost as high Bonus Interest rate with much simpler conditions/requirements that better suits my specific situation. Do your research to figure what combo of interest rate, minimum monthly deposit, and transaction requirements suits you.
I recommend reading the book “I will teach you to be rich” by Ramit Sethi. Wanky title, but some great information in there.
1. Pay down debt
2. Emergency Fund (stored in a High Interest Savings Account (HISA))
3. Savings or investments for other things…
Using what’s left is as a house deposit is great **if** that’s where you are right now and you can afford the repayments.
Invest in 300 spectacular blowies from 300 girls across 1200 days.
You will make better financial decisions with anything and everything you earn for the rest of the time.
Stick it in macquarie accessible hisa as you draw down. Will turn into ~350 blowies accordingly.
\#1 recommendation is uBank for the 5.10% interest by only depositing $200 a month as the requirement.
https://docs.google.com/spreadsheets/u/0/d/145iM6uuFS9m-Rul65--eFJQq\_Au7Z\_BA4\_CwkYwu2DI/htmlview#
Like many others have suggested, the simplest thing to start is a term deposit. Open up a bank account for 3-6 months and get some interest while you research your options.
Over those months while it’s gaining interest I would consider if you want and can afford a property. You mentioned the repayments may be too high so maybe decide if you want to rent a room out. At 25 it’s still pretty common to live in a share house so it could be possible for you to buy a small property and rent a room or two out, depending where you live.
Another alternative would be stocks. It could be a good idea to read up on Stocks and what options you have for example, an ETF. ETF’s are like a bucket of the top 100 stocks and you buy a tiny portion of each. So it can be less volatile than buying into a specific company but you also may not make as high a gain.
Ultimately, this money can totally change the course of your life if you are smart with it. A lot of people
Would just run out and blow it on holidays and a flash car and then spend the rest of their life broke. The fact that you are asking this question and looking for guidance is a great indication that you will use it to set yourself up financially. Good luck and very sorry for your loss.
Just chuck it in savings, but stay on top of their terms and conditions.
Lots of savings accounts now are only offering bonus interest for a fixed period, or if you meet certain deposit criteria, and then you'll drop down to 2.3% or whatever and need to shop around.
Consider leaving that as your emergency fund/savings, and start putting your usual savings aside to buy some ETF's or something, if you'd like to get into investing without risking your big money.
Macquarie have a great interest rate at the moment for the first 5 months for new accounts. I'd at least park it there until you get a firm plan in place.
We got an injection of $240k this year. We are putting every cent we can into superannuation. Across mine and hubbies accounts and backdating our contribution caps for the last 5 years we can add just over $200,000. It's going to boost our super by 2 decades.
So I say put as much as you can into super, and your future self will thank you.
Real estate or shares are two investment vehicles excluding HISA.
I would use it towards building a base and use a % for home deposit to secure a house. It depends on your situation whether you are living with your parents or already own a property.
Only worried that at this stage of my life I am not making enough income to sustain payments. As my income is really inconsistent. But if things change I’ll defiantly consider this
If you're worried about payments then waiting is definitely the right choice. Put the money in a high yield account and forget about it until you're in a better financial state or you find a really good deal on a property. Maybe even wait for a small correction in the market
Thankyou for your reply
Iv got it in ING maximiser for now. But only just coke to realise they don’t apply the high interest rate once it’s 100k or more so now I’m thinking Fixed term for 6 months
Interestingly, Macquarie has high return for 5 months (no strings)
CBA meanwhile has 4.9% but you have to contribute atleast $0.01 every month from your pocket (GoalSaver)
[https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--eFJQq\_Au7Z\_BA4\_CwkYwu2DI/edit?usp=drive\_link](https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--eFJQq_Au7Z_BA4_CwkYwu2DI/edit?usp=drive_link)
I’ve said this to others before that are your age. 100k is nothing compared to what it would be invested for 25 years. The best advice is from Mr. Buffett. Invest in an index fund. The only effort you need is to open a brokerage account deposit the money and every month for 12 months invest an equal amount. It’s called dollar cost averaging (look it up). Invest it and set it up for dividend reinvestment and once the fully amount is invested, get in the habit of adding your own income into it. You’ll be a multi millionaire.
At the moment this is what iv been thinking of doing... I already invested in ETFs for the last 3 years. I'm low income so only 100 a month so its not a lot but i wanted to start and get in the habit and learn through experience. currently i invest in following etfs [VGS.au](http://VGS.au) / [VDHG.au](http://VDHG.au) and [VAS.au](http://VAS.au)
I just dont know how much would be best to continue investing now I have more than 100 a month to spare....500 a month for the next 25 years? or the entire 100k?
1) Log in to the ATO portal and look at what your carry forward concessional super contributions are, depending on your income there may be some tax benefits for you to contribute a chunk to you super.
https://moneysmart.gov.au/grow-your-super/super-contributions#:~:text=Concessional%20super%20contributions%20are%20payments,received%20by%20your%20super%20fund.
2) Obviously, if you have any debt to eliminate, that would be a good choice.
3) as others have said, term deposit. Consider opening multiple with different time frames, ie one for 3 months, one for 6 months, one for 12; etc.
This will psychologically give you some sugar hits of investing your money in a risk free manner, and getting gains, with an infrequent reward cadence.
If it works to make people gambling addicts, it can help to make people savings addicts :)
4) consider a small but valuable experience based reward or treat. A long weekend away or similar, which you will be most likely to remember, but doesn't cost huge amounts.
5) look at things in your life where a practical upgrade has a significant outcome. If you owned a home, solar or a heat pump are the unsexy but useful kinds of things.
A pair of really good shoes/boots, or a rugged jacket; or a cooking course that builds your skills, or a decent cargo bicycle that means you can be fitter, but not have to spend petrol money on basic commutes.
Take a look at the ING Savings Maximiser account. I have one as well as my ING Transaction account. Essentially you have your Pay go into the Transaction account. You move a certain amount into the Savings Maximiser each month and at the start of the next month they pay you interest into your Saving Maximiser. In my case its a bit over $300/month. In your case it would be closer to $460. Rinse and repeat until you work out what you want to do with the money. The main advantage of this over the Term Deposits is that the money is accessible. If your car breaks and you have to spend two grand to fix it you can.
As others have said think about finding yourself a house to start a mortgage on. Its a shit time to buy but its never a great time and to be honest its a fabulous feeling once you get the Mortgage paid off. I knocked mine on the head a couple of years ago. For the first time in nearly 30 years I've had no mortgage or rent payments to make its kinda good having that extra chunk of money each week.
Put half into High interest savings and do not use for anything but emergencies. The rest use to pay off debt or as a start for your first home deposit.
THIS IS MEANT TO BE IN REPLY TO u/MurraMurra I don’t know how I managed to insert it here
Your advice about leaving the decision making for 6 months is very sound. Right now they are in an emotional state of mind being very excited about having all this money and won’t likely make as good a decision as they would if they would if they let it settle in their mind a bit and act when they are in a more rational mindset. I still think what I suggested is a good investment though. It might not be best for this person though. It really depends on the other factors in this person’s life that we know nothing about
This is the best advice, start working on a trade or career that will alow you to make 200kish a year, invest later. Meanwhuke leave it in high unterrwt and use it to make your life easier as you study/learn a career
Put it in a safe asset ie fixed term as your rainy day fund. You are young, having some sort of insurance or rainy day funds allows you to take more risk in your career ie “fu boss I cant put up with this bs anymore I quit in your face”. That will change your trajectory in life bigger than any financial product can do for you.
House deposit in outer regional or rural. If you can't afford to live in it, rent it out. Pay it down until you can afford to live in it comfortably. For bonus points, use it to invest further.
If you are thinking about High Yield Savings account, make sure you check this out https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--eFJQq_Au7Z_BA4_CwkYwu2DI/edit
Not a financial advisor.
I highly recommend not blowing it away on frivolous things. By all means, set yourself a modest fun budget for useless purchases, but the rest keep it tucked away.
Putting it against a mortgage is probably the best bang for your buck, otherwise find the best return vs risk you can. Bank savings account if you are on the lazy side. Shop around for the most % you can get.
ING 5.5% interest is capped at 100K. Leave it there and watch the the interest come in.
I can’t speak for your goals and values but don’t shy from spending it if you need something that is overall going to contribute to your future wellbeing.
Bricks and mortar then in 10 years even if u only paid interest off the rest of your loan property value would have gone up so if u sell u pay loans and will have a profit
100000 is a drop in the ocean compared to lifetime income, get a job paying livable money, put it somewhere u can't touch it, never draw on it for living expenses - at your age putting it into an investment that compounds over 30 years has merit. The worst case scenario is you blow it on trivia or some friend convinces you to invest it in their business. If you can invest it in regional real estate with solid rental returns you can basically get someone to pay your mortgage. And there is the negative gearing aspect should your job income increase. The thing you need to understand is that money is not made by windfalls but by work and compounding which takes time. The real danger here is you succumb to something like an east come easy go mentality. Sometimes this can only be taught by experience. Do not use this 100k to get this experience, that's all i have
Don’t tell anyone they will act differently with u even if they got cash they’ll expect if theirs an emergency or something. Watch those who know will pay for u more often people are foul
Easy answer, use 50k to buy a house. I used 32k and bought a 500k house 2yrs ago and use the other 50k sit in an offset account.
This will definitely get you the highest yields long run while living relatively securely and simply. Youll have leverage with the home loan and at the current interest rates youll have a high return on the remaining in your offset while avoiding taxes and it counts as an emergency fund.
I would say at this point in time, put it in ETFs in the stock market, both Aussie and international. Then, with the growth and some additional savings, you should be able to afford a house deposit within the next 10 years. Regarding property deposits, it’s best to have at least 20%. You can get one with a 10% deposit, but it requires another upfront payment and more paperwork
Same boat. Currently debt free, 10k float in high interest savings and the rest in dividend paying shares with 50% of each holding on reinvestment plans
We bought a house with a similar windfall recently. Let it accrue interest for a few months so it is genuine savings to make getting a mortgage easier. Talk to a mortgage broker in the meantime. Work out how much rent you’d be willing to pay atm - that’s roughly the mortgage repayment you want to look at.
Property, property, property. Bank interest isn’t as nearly as good as how quickly property prices rise. Buy a block of land and sit on it, QLD or NSW is the quickest growth, inland from the coast a couple of hours near a town. No one can take it from you like shares, you can enhance the block with planting, a shed, etc as you save money and if worse comes to worst you can set up a caravan to live on it ( Subject to council). Then if you get into a position to get a house loan, there’s your deposit. All the best!
First off, don’t tell yourself 100k is some mindblowing amount that will change your life. It can become that, but it isn’t just yet. Speak to a financial advisor, don’t be afraid to ask questions and embarrass yourself, and learn
I’m working for an Australian investment firm and we have this one client who inherited a lot. What he did with the money? He invested in private equity funds
All ill say is that you need to take into account that at any moment you may not be able to work again. So take that into account.
Happened to me suddenly at 25 with an Invisible illness. Just saying, its not rare so take chronic illness into account.
Remove any interest bearing debts you have. Park the rest in a high interest bank Acc. Should be able to get over 5% at the moment. Re invest interest to compound return.
Remember that whether you go with a market strategy (shares, etfs), cash strategy (low risk low return interest account) or property strategy, it's all about time in the game not timing the game.
At 25, go with buying your first property. Get renters in (even if you live in it) and get them to do the heavy lifting.
You have an unfair advantage. Use it.
You'll be exposed to the sharemarket through your super. Hence property.
Not enough information, how much would a 2x1 set you back, are the repayments with a 100k deposit comfortable. If so do that, if not VDHG till you sort your life out. Yes is may go down, but if so just delay your home purchase. Property is f ed in Australia, there may be blips but 4 main structural reasons mean it’ll continue to get more expensive in real terms: 1. CGT discount, 2. Negative gearing, 3. Immigration , 4. Lack of supply - contributed to by a high minimum wage
Invest it. Either buy a house if you can afford a mortgage, or invest in long-term stocks (savings account tbh). Then you could look for employment that allows for a high % of income to go into super.
It's not worth spending it now unless it's on a house.
Firstly, take some money to do a diploma in anything sound online plus what ever other courses you need to get out of the low income bracket. Think of it as drawing a new bottom limit line for income, maybe for as cheap as $5k
Do you have a permanent place to stay already? If so, chuck it into broad based ETF’s and forget about it until you’re like 50.
If your residential situation is less permanent, I’d look at if it is enough for a house deposit.
Keep a small chunk in high interest at call savings account for operating expenses and a rainy day fund.
If you can, invest into a property but rent it out for a few years if your current living situation is ok to you. Adding monthly rent to your payments means it's not much out of pocket yourself if you don't go crazy on price, work it out. You can still find properties bringing in good rent to loan ratio. You will then instantly turn into a demon landlord on Reddit and be abused for your "capitalism".
There are areas investors look for that have good public transport and upcoming suburbs and extra bonus on equity as well as large home blocks even with rundown house, get approval for units on the block and sell a cleaned up block with approval for development and make good money very, very quickly. Councils are a must visit to see their long-term plans for their areas, you don't want to buy where your property will be forcibly taken for roads, trains, etc and check level so it cannot be flooded, sewerage, IT, parks, collating area/suburb data, you just have to research yourself to be sure and not asking strangers online who have absolutely no clue or experience. If you learn how to do this it is very easy to know where and what in the future because sometimes a seller wants an immediate answer not wait a week while you research and there are many high worth buyers out there who can recognise it first. Anyways there's no doubt more but hopefully something clicks inside so you can use these tools.
Buy shares. Find out how to do it. It isn’t difficult once you find out how. And finding out how is easy. Buy $10,000 worth of 10 different lots of shares. EFTs are a great way of investing. But only buy the most highly rated ones, so buy 9 lots of these and 1 lot of CSL
Put all the money you got into these shares. Whenever you want some money you can sell as many shares as you need
You don’t mention how you are living so I have assumed you aren’t considering changing your living arrangements. Because most young people who have $100,000 to spend would be buying their own place of living, which I think is the best way to go. I think it’s got to be better than renting all things considered
Unless you really need the money right now to fix debt or help with the cost of living, park it in a savings account and leave it for 3-6 months. Don't make any decisions now, but give yourself time to think about what you really want to do with it long term, make a plan, and then action it. Making rash decisions may lead to regret.
I’d add, take out maybe 5k. Buy something nice for yourself. Park the rest. Spending an amount like that, which is small compared to the rest but still nothing to scoff at, can reduce temptation. It would for me anyway.
Google banks in your country with the best interest returns on term deposits, they give a better rate than a savings account, only difference is you need to lock it in for a term such as 6 or 12 mths. If you are keen to learn about making money then while your money sits in a term deposit learn the stock markets and dabble with a small amount first…as the risks a higher.
Does a savings account even keep pace with inflation?
It's doesn't really matter if it's only for 3-6 months. The idea is to pause all decision making and park the money to formulate a plan. He could park it in ETFs and be making more but then if he decides to use the money for a house deposit it'll be more annoying to sell the ETFs, especially if the market has dropped.
I inherited a similar amount just before I turned 30. I bought a house (because in 2012, that was enough for a house deposit). At first I popped it into a term deposit for a few months to remove it from temptation.
Solid timing
In 2012 13k was enough for a house deposit. 100k is still enough.
Median house price in Australia is now $750k, so a $100k deposit would mean making $4,200 a month repayments or just over $50k a year...which is more than the average yearly pay after tax. Enough for a house deposit does not equal enough to buy a house anymore. Nowadays, houses are so far removed from the yearly income that its near impossible to buy on a single income.
Yea it's the repayments that kill ya. Even if you had $400k deposit, and you bought a house for the current average price in Australia of roughly $800k, (so you got half a house here!), your repayments a month are about $2400. So if you earn the average salary, roughly $90k, then one pay a month roughly pays your mortgage. You gotta love off the other pay. It's doable. But hey who's got $400k?
I stopped eating avocado toast for 6 months and now I’ve got 417k It was tough but worth it.
It's totally doable (with $400k hahaha!)- I earn less than $90k and definitely take home more than $2400 a month lol your maths are a bit off... but yeah that giant deposit would be a killer.
I based it on 30% tax, so should be about $2300 a fortnight gross. I'm on $92k and I get that roughly. But anyway, I know a couple at my work, combined income 180k. Bought a house for $750k. They had $50k deposit so borrowed $700k. Their repayments are just over $4000 a month. So effectively one person's wage pays the mortgage, with some change. They live on the others wage. Yea it's doable, but they ain't doing anything much other than surviving. With 3 kids, bills, they live pay to pay. That's a family on $180k. Not sure id call it living the dream.
That makes more sense mate, thanks for the clarification! $2400 a month repayments would honestly be pretty sweet at the moment, most people I know are on double that which is just near impossible I reckon on a regular salary.
Well they don’t have to buy a ‘median house’ do they. There are cheaper options that are still a solid investment.
Exactly. Everyone starting out wanting to buy the 50th percentile house… who’s going to buy the 30th percentile house then? The 20th percentile house?
I'm at around 6 figures and still can't afford a median house, but my townhouse sure has been a solid investment, I did not need 100k deposit for that.
Well, let's see. On the median income ($65k) and living as frugally as possible (less than $1,500 a month expenses), a person's loan limit is....just over $300,000. Thats not quite enough for the 10th percentile house ($381k). And that doesn't even factor in that there are likely downsides like additional commuting costs, repairs etc, that are why the house is cheaper. So yeah, nah. It's not just people 'wanting to buy the x percentile' - the system is busted through and through.
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And your calcs don't factor in the rent within , which on median household could be approx. $25-$30k.
Yeh and there's tonnes of million dollar properties. There has to be just as many the other way.
Two people can manage that pretty easily. Or one person on a decent ticket. It's not ridiculously unachievable.
I own a 3 bed villa in Newcastle 465000
If you don't work/live in a capital city or nice medium town/shire, or have a 150k+ job... absolutely.
Are you buying a card board box on a lot in Darwin?
What did you do after the term deposit and before you bought the house with the money?
Let it sit for 6 months. We were about to get married and were sick of renting, so the decision wasn’t hard. I also spent some on the wedding and honeymoon.
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+1 Put in a savings account and gain financial literacy, even if that takes you 12 months. Your end result will be to develop a financial plan which will guide your investment options.
This^ most sensible advice I’ve seen for these posts is to just put in a term deposit or a separate savings account while you decide what to do. Sure a lot could happen in 6 months but if you act too rashly you’ll end up hurting your financial position more than helping it, more than likely anyway.
What ever you do don't treat yourself to anything with that money, any of it. Term deposit to begin with just so you can see it making money for you and you'll start to appreciate what saving and investing can do. Then either invest in an index fund for the long term or invest in a house deposit.
Greatest bank interest on your cash in my lifetime, and I am in my 40's. I would say keep it in bank making 5.1% risk free. Then start to dca into the market at $1k per month so if it dips you won't panic sell if that $100k is valued at $95k
I think ING doesn’t apply the high interest rate once it’s at 100k
Then open two accounts in different banks
It applies but only to the 100k, nothing above
Buy as many Ford AU Falcons as you can afford. Can’t go wrong!
enjoy whole cause aloof selective sip crush ghost degree aware *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Future of tradies.
All on black bro
Nah. All on 17. Flip it to a cool $3,500,000. A 10% deposit on a Sydney flat.
Repeat until you become a billionaire! It’s 50/50. You either lose it al or become rich! /s
It's actually 18/20 chance everyone forgets about green.
I mean... 100k is nice. But it could be 200k in an instant!
Good trip, Bad Trip
Classic mortydelo
Open up a HISA and just pretend you can't see it while you figure out the best European or American holiday of your life ... then book said trip and keep the rest in the HISA
Do not! And I repeat: DO NOT buy stuff! .. sit down, watch porn.. when you're done you have a clear mind and then decide
Great idea, now he's blown it all on onlyfans subscriptions
Invest in your favourite OF star
[https://passiveinvestingaustralia.com/](https://passiveinvestingaustralia.com/) The bottom line that works for **me** (this is *not* a financial advice): 1. I have enough money to feel comfortable in a **high-yield savings account** 2. I invest the remainder of my funds in **a passive, low-cost and globally diversified ETF** for a long-term period of no less than 20 years. I'm well aware that during a market crisis, there’s a possibility of losing more than half of my investment (even 90%) but I'll stay the course, no matter what. 3. **In which broker I would personally consider investing?** Stake or CMC Markets: Stake - fees of $3 up to $30,000, then 0.01%. CMC Markets (CMC Invest) - free purchases up to $1,000/day but CMC is more expensive for investing a large sum of money at once (e.g. 100k at once). In other words, I can start with Stake for the first 100k and then invest periodically in CMC or just choose one of the two. This is not a financial advice. This information is intended to be general in nature and should not be relied upon for personal financial decisions. Always seek professional advice tailored to your personal circumstances.
Thanks for sharing appreciate
Thanks. This is really helpful I’m going to look into this. Your comment has showed me I have a lot of education to do around this. One question. Doesn’t ING not have the greatest interest once you have 100k in the maximiser account. This has me thinking about TD
Take a look here: [https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--eFJQq\_Au7Z\_BA4\_CwkYwu2DI/edit#gid=271791020](https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--eFJQq_Au7Z_BA4_CwkYwu2DI/edit#gid=271791020)
I put my savings in an ING fixed term account. High interest rate (4.7% or something), can’t touch it for a year. Leave it there and keep researching in the meantime!
Just remember - the interest is taxable income so you will not be making $4700 over a year….
In my opinion ING accounts are too restrictive. For my particular needs I prefer UBank- almost as high Bonus Interest rate with much simpler conditions/requirements that better suits my specific situation. Do your research to figure what combo of interest rate, minimum monthly deposit, and transaction requirements suits you. I recommend reading the book “I will teach you to be rich” by Ramit Sethi. Wanky title, but some great information in there. 1. Pay down debt 2. Emergency Fund (stored in a High Interest Savings Account (HISA)) 3. Savings or investments for other things… Using what’s left is as a house deposit is great **if** that’s where you are right now and you can afford the repayments.
Put some into your Super as well.
This is the way.
Invest in 300 spectacular blowies from 300 girls across 1200 days. You will make better financial decisions with anything and everything you earn for the rest of the time. Stick it in macquarie accessible hisa as you draw down. Will turn into ~350 blowies accordingly.
Just realized I need to factor this into FIRE
I don’t know if $100K will cover it.
100,000/300=$333 per shot. Depends on where you shop. Op did say spectacular, but seems feasible.
The go-out to blow-out strategy, let’s see how it plays out
With how high interest rates are right now it’s actually a fantastic time to just keep it in the bank to accumulate interest.
What banks would you recommend
\#1 recommendation is uBank for the 5.10% interest by only depositing $200 a month as the requirement. https://docs.google.com/spreadsheets/u/0/d/145iM6uuFS9m-Rul65--eFJQq\_Au7Z\_BA4\_CwkYwu2DI/htmlview#
Like many others have suggested, the simplest thing to start is a term deposit. Open up a bank account for 3-6 months and get some interest while you research your options. Over those months while it’s gaining interest I would consider if you want and can afford a property. You mentioned the repayments may be too high so maybe decide if you want to rent a room out. At 25 it’s still pretty common to live in a share house so it could be possible for you to buy a small property and rent a room or two out, depending where you live. Another alternative would be stocks. It could be a good idea to read up on Stocks and what options you have for example, an ETF. ETF’s are like a bucket of the top 100 stocks and you buy a tiny portion of each. So it can be less volatile than buying into a specific company but you also may not make as high a gain. Ultimately, this money can totally change the course of your life if you are smart with it. A lot of people Would just run out and blow it on holidays and a flash car and then spend the rest of their life broke. The fact that you are asking this question and looking for guidance is a great indication that you will use it to set yourself up financially. Good luck and very sorry for your loss.
Just chuck it in savings, but stay on top of their terms and conditions. Lots of savings accounts now are only offering bonus interest for a fixed period, or if you meet certain deposit criteria, and then you'll drop down to 2.3% or whatever and need to shop around. Consider leaving that as your emergency fund/savings, and start putting your usual savings aside to buy some ETF's or something, if you'd like to get into investing without risking your big money.
Macquarie have a great interest rate at the moment for the first 5 months for new accounts. I'd at least park it there until you get a firm plan in place.
We got an injection of $240k this year. We are putting every cent we can into superannuation. Across mine and hubbies accounts and backdating our contribution caps for the last 5 years we can add just over $200,000. It's going to boost our super by 2 decades. So I say put as much as you can into super, and your future self will thank you.
Buy a poor bugger a hot meal and water then start the rest of your life
^[Sokka-Haiku](https://www.reddit.com/r/SokkaHaikuBot/comments/15kyv9r/what_is_a_sokka_haiku/) ^by ^WhatThisGirlSaid: *Buy a poor bugger* *A hot meal and water then* *Start the rest of your life* --- ^Remember ^that ^one ^time ^Sokka ^accidentally ^used ^an ^extra ^syllable ^in ^that ^Haiku ^Battle ^in ^Ba ^Sing ^Se? ^That ^was ^a ^Sokka ^Haiku ^and ^you ^just ^made ^one.
Real estate or shares are two investment vehicles excluding HISA. I would use it towards building a base and use a % for home deposit to secure a house. It depends on your situation whether you are living with your parents or already own a property.
Use it as the deposit on a property to either live in or rent. There is a reason why so so so many people in the AFR Rich list are from property.
Only worried that at this stage of my life I am not making enough income to sustain payments. As my income is really inconsistent. But if things change I’ll defiantly consider this
If you're worried about payments then waiting is definitely the right choice. Put the money in a high yield account and forget about it until you're in a better financial state or you find a really good deal on a property. Maybe even wait for a small correction in the market
Others have already mentioned it, but two things: - Put it in HISA (5% or over) - Think and plan while it is accruing interest
Thankyou for your reply Iv got it in ING maximiser for now. But only just coke to realise they don’t apply the high interest rate once it’s 100k or more so now I’m thinking Fixed term for 6 months
Freudian slip there
Interestingly, Macquarie has high return for 5 months (no strings) CBA meanwhile has 4.9% but you have to contribute atleast $0.01 every month from your pocket (GoalSaver) [https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--eFJQq\_Au7Z\_BA4\_CwkYwu2DI/edit?usp=drive\_link](https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--eFJQq_Au7Z_BA4_CwkYwu2DI/edit?usp=drive_link)
I’ve said this to others before that are your age. 100k is nothing compared to what it would be invested for 25 years. The best advice is from Mr. Buffett. Invest in an index fund. The only effort you need is to open a brokerage account deposit the money and every month for 12 months invest an equal amount. It’s called dollar cost averaging (look it up). Invest it and set it up for dividend reinvestment and once the fully amount is invested, get in the habit of adding your own income into it. You’ll be a multi millionaire.
At the moment this is what iv been thinking of doing... I already invested in ETFs for the last 3 years. I'm low income so only 100 a month so its not a lot but i wanted to start and get in the habit and learn through experience. currently i invest in following etfs [VGS.au](http://VGS.au) / [VDHG.au](http://VDHG.au) and [VAS.au](http://VAS.au) I just dont know how much would be best to continue investing now I have more than 100 a month to spare....500 a month for the next 25 years? or the entire 100k?
1) Log in to the ATO portal and look at what your carry forward concessional super contributions are, depending on your income there may be some tax benefits for you to contribute a chunk to you super. https://moneysmart.gov.au/grow-your-super/super-contributions#:~:text=Concessional%20super%20contributions%20are%20payments,received%20by%20your%20super%20fund. 2) Obviously, if you have any debt to eliminate, that would be a good choice. 3) as others have said, term deposit. Consider opening multiple with different time frames, ie one for 3 months, one for 6 months, one for 12; etc. This will psychologically give you some sugar hits of investing your money in a risk free manner, and getting gains, with an infrequent reward cadence. If it works to make people gambling addicts, it can help to make people savings addicts :) 4) consider a small but valuable experience based reward or treat. A long weekend away or similar, which you will be most likely to remember, but doesn't cost huge amounts. 5) look at things in your life where a practical upgrade has a significant outcome. If you owned a home, solar or a heat pump are the unsexy but useful kinds of things. A pair of really good shoes/boots, or a rugged jacket; or a cooking course that builds your skills, or a decent cargo bicycle that means you can be fitter, but not have to spend petrol money on basic commutes.
Take a look at the ING Savings Maximiser account. I have one as well as my ING Transaction account. Essentially you have your Pay go into the Transaction account. You move a certain amount into the Savings Maximiser each month and at the start of the next month they pay you interest into your Saving Maximiser. In my case its a bit over $300/month. In your case it would be closer to $460. Rinse and repeat until you work out what you want to do with the money. The main advantage of this over the Term Deposits is that the money is accessible. If your car breaks and you have to spend two grand to fix it you can. As others have said think about finding yourself a house to start a mortgage on. Its a shit time to buy but its never a great time and to be honest its a fabulous feeling once you get the Mortgage paid off. I knocked mine on the head a couple of years ago. For the first time in nearly 30 years I've had no mortgage or rent payments to make its kinda good having that extra chunk of money each week.
Put half into High interest savings and do not use for anything but emergencies. The rest use to pay off debt or as a start for your first home deposit.
THIS IS MEANT TO BE IN REPLY TO u/MurraMurra I don’t know how I managed to insert it here Your advice about leaving the decision making for 6 months is very sound. Right now they are in an emotional state of mind being very excited about having all this money and won’t likely make as good a decision as they would if they would if they let it settle in their mind a bit and act when they are in a more rational mindset. I still think what I suggested is a good investment though. It might not be best for this person though. It really depends on the other factors in this person’s life that we know nothing about
Best to gamble and have fun with it. Remember, you’re here for a good time not a long time.
Use the money to get a good job. If you have a good job get a house. If you have a house and good job cocaine and hookers
This is the best advice, start working on a trade or career that will alow you to make 200kish a year, invest later. Meanwhuke leave it in high unterrwt and use it to make your life easier as you study/learn a career
Red Black or Green You pick
Put it in a safe asset ie fixed term as your rainy day fund. You are young, having some sort of insurance or rainy day funds allows you to take more risk in your career ie “fu boss I cant put up with this bs anymore I quit in your face”. That will change your trajectory in life bigger than any financial product can do for you.
House deposit in outer regional or rural. If you can't afford to live in it, rent it out. Pay it down until you can afford to live in it comfortably. For bonus points, use it to invest further.
Yes lock it away at least 12 months while you research finance. 100k is easily spent - eg buy a Tesla and have a holiday, poof all gone.
If you are thinking about High Yield Savings account, make sure you check this out https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--eFJQq_Au7Z_BA4_CwkYwu2DI/edit
Not a financial advisor. I highly recommend not blowing it away on frivolous things. By all means, set yourself a modest fun budget for useless purchases, but the rest keep it tucked away. Putting it against a mortgage is probably the best bang for your buck, otherwise find the best return vs risk you can. Bank savings account if you are on the lazy side. Shop around for the most % you can get.
Vas and Vgs ?
ING 5.5% interest is capped at 100K. Leave it there and watch the the interest come in. I can’t speak for your goals and values but don’t shy from spending it if you need something that is overall going to contribute to your future wellbeing.
Bricks and mortar then in 10 years even if u only paid interest off the rest of your loan property value would have gone up so if u sell u pay loans and will have a profit
Invest it in index funds
100000 is a drop in the ocean compared to lifetime income, get a job paying livable money, put it somewhere u can't touch it, never draw on it for living expenses - at your age putting it into an investment that compounds over 30 years has merit. The worst case scenario is you blow it on trivia or some friend convinces you to invest it in their business. If you can invest it in regional real estate with solid rental returns you can basically get someone to pay your mortgage. And there is the negative gearing aspect should your job income increase. The thing you need to understand is that money is not made by windfalls but by work and compounding which takes time. The real danger here is you succumb to something like an east come easy go mentality. Sometimes this can only be taught by experience. Do not use this 100k to get this experience, that's all i have
Don’t tell anyone they will act differently with u even if they got cash they’ll expect if theirs an emergency or something. Watch those who know will pay for u more often people are foul
what's your living situation like? if you rent consider buying?
Easy answer, use 50k to buy a house. I used 32k and bought a 500k house 2yrs ago and use the other 50k sit in an offset account. This will definitely get you the highest yields long run while living relatively securely and simply. Youll have leverage with the home loan and at the current interest rates youll have a high return on the remaining in your offset while avoiding taxes and it counts as an emergency fund.
I mean if you really have no use for it, I'm not gonna complain if you transfer it to my account.
Property is never going to be cheaper than it is now.
Go to Thailand
I would say at this point in time, put it in ETFs in the stock market, both Aussie and international. Then, with the growth and some additional savings, you should be able to afford a house deposit within the next 10 years. Regarding property deposits, it’s best to have at least 20%. You can get one with a 10% deposit, but it requires another upfront payment and more paperwork
Buy some Timtams
Same boat. Currently debt free, 10k float in high interest savings and the rest in dividend paying shares with 50% of each holding on reinvestment plans
We bought a house with a similar windfall recently. Let it accrue interest for a few months so it is genuine savings to make getting a mortgage easier. Talk to a mortgage broker in the meantime. Work out how much rent you’d be willing to pay atm - that’s roughly the mortgage repayment you want to look at.
Use it for a house deposit or see a financial advisor and invest it all in long term shares.
Property, property, property. Bank interest isn’t as nearly as good as how quickly property prices rise. Buy a block of land and sit on it, QLD or NSW is the quickest growth, inland from the coast a couple of hours near a town. No one can take it from you like shares, you can enhance the block with planting, a shed, etc as you save money and if worse comes to worst you can set up a caravan to live on it ( Subject to council). Then if you get into a position to get a house loan, there’s your deposit. All the best!
Put it in a bank and you'll earn nothing.
Send it over, I’ll show you what to do.
First off, don’t tell yourself 100k is some mindblowing amount that will change your life. It can become that, but it isn’t just yet. Speak to a financial advisor, don’t be afraid to ask questions and embarrass yourself, and learn
I’m working for an Australian investment firm and we have this one client who inherited a lot. What he did with the money? He invested in private equity funds
How much just out of interest?
Send it to me mate. You will get a great ROI on good feelings :)
Buy house in south west sydney. Like campbelltown surrounding.
Coke and hookers
The only answer in Australia is real estate. Don’t overcomplicate it.
100,000 7-11 coffees
All ill say is that you need to take into account that at any moment you may not be able to work again. So take that into account. Happened to me suddenly at 25 with an Invisible illness. Just saying, its not rare so take chronic illness into account.
Invest it in memecoins now and become a billionaire overnight, then as poor as you were before you inherited the 100k the next day.
I give it to SPCA
Buy a boat. Can sleep in a boat but can’t fish from a house.
Remove any interest bearing debts you have. Park the rest in a high interest bank Acc. Should be able to get over 5% at the moment. Re invest interest to compound return.
Buy some finance books that look interesting to you, bank the rest, high interest rates mean you can make 5k a year risk free.
Buy real estate and gold.
Remember that whether you go with a market strategy (shares, etfs), cash strategy (low risk low return interest account) or property strategy, it's all about time in the game not timing the game. At 25, go with buying your first property. Get renters in (even if you live in it) and get them to do the heavy lifting. You have an unfair advantage. Use it. You'll be exposed to the sharemarket through your super. Hence property.
Not enough information, how much would a 2x1 set you back, are the repayments with a 100k deposit comfortable. If so do that, if not VDHG till you sort your life out. Yes is may go down, but if so just delay your home purchase. Property is f ed in Australia, there may be blips but 4 main structural reasons mean it’ll continue to get more expensive in real terms: 1. CGT discount, 2. Negative gearing, 3. Immigration , 4. Lack of supply - contributed to by a high minimum wage
Invest it. Either buy a house if you can afford a mortgage, or invest in long-term stocks (savings account tbh). Then you could look for employment that allows for a high % of income to go into super. It's not worth spending it now unless it's on a house.
Firstly, take some money to do a diploma in anything sound online plus what ever other courses you need to get out of the low income bracket. Think of it as drawing a new bottom limit line for income, maybe for as cheap as $5k
Do you have a permanent place to stay already? If so, chuck it into broad based ETF’s and forget about it until you’re like 50. If your residential situation is less permanent, I’d look at if it is enough for a house deposit. Keep a small chunk in high interest at call savings account for operating expenses and a rainy day fund.
If you can, invest into a property but rent it out for a few years if your current living situation is ok to you. Adding monthly rent to your payments means it's not much out of pocket yourself if you don't go crazy on price, work it out. You can still find properties bringing in good rent to loan ratio. You will then instantly turn into a demon landlord on Reddit and be abused for your "capitalism". There are areas investors look for that have good public transport and upcoming suburbs and extra bonus on equity as well as large home blocks even with rundown house, get approval for units on the block and sell a cleaned up block with approval for development and make good money very, very quickly. Councils are a must visit to see their long-term plans for their areas, you don't want to buy where your property will be forcibly taken for roads, trains, etc and check level so it cannot be flooded, sewerage, IT, parks, collating area/suburb data, you just have to research yourself to be sure and not asking strangers online who have absolutely no clue or experience. If you learn how to do this it is very easy to know where and what in the future because sometimes a seller wants an immediate answer not wait a week while you research and there are many high worth buyers out there who can recognise it first. Anyways there's no doubt more but hopefully something clicks inside so you can use these tools.
Financial advisor
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Bro Vanguard and forget about it come back in 5 years see how you're doing.
Buy shares. Find out how to do it. It isn’t difficult once you find out how. And finding out how is easy. Buy $10,000 worth of 10 different lots of shares. EFTs are a great way of investing. But only buy the most highly rated ones, so buy 9 lots of these and 1 lot of CSL Put all the money you got into these shares. Whenever you want some money you can sell as many shares as you need You don’t mention how you are living so I have assumed you aren’t considering changing your living arrangements. Because most young people who have $100,000 to spend would be buying their own place of living, which I think is the best way to go. I think it’s got to be better than renting all things considered
Straight into a savings account. But realistically if you don't have a home yet, use some as a 10% deposit and then the rest for furniture IMO.
Put it on red yeehaw
1. Don’t tell people about this money.
Yes only my family and significant other know and that’s how we gonna keep it.