If you had one million to invest

[buggerlugs]

If you had one million to invest at the moment, what would you put it in ?
Spoke to a couple of self funded retiree's yesterday and the returns are woeful and they are struggling. Thoughts in our current economic climate ?

[Franco Cozzo]

Marijuana and ice

[wodahs]

Damo you forgot the hookers , every marijuana and ice party needs the hookers

[wodahs]

if it were me id be looking at approx. $450000 in long term high interest with interest being paid in to a separate account , simular again in a spread of blue chip stocks/shares and have a gamble with the rest on a spread of no name .1 to 1c of a cent stocks/shares

[PHANTMXR6]

I'd throw 50% into Super, and 50% into shares.

The old saying of bricks and mortar haven't worked out for me so I'm not getting burnt by real estate again.

[castellan]

Originally Posted by buggerlugs

If you had one million to invest at the moment, what would you put it in ?
Spoke to a couple of self funded retiree's yesterday and the returns are woeful and they are struggling. Thoughts in our current economic climate ?

As to retiree's, live it up while you can.

As to me, invest in things to do with war or where you come out on top due to others miss fortune. it's true and because we are living in the most foolish era of brainwashed people ever.

[Stefan]

No point talking to retirees the can't really invest in much other than having cash in the bank.

Retirees need to protect their capital so need to be conservative on their investments.

Younger people can look into more volatile but potentially lucrative long term investments.

The investments or a 25 year old should be completely different than for a 65 year old. Not many understand this, even financial advisers struggle with this concept.

[LyleXR8]

Does anyone think of cars as an investment? I'm not talking of anything under 20 years, more classics that are either going to hold value or go up slowly, ie hotrods, 50s 60s chevs, all cars in the 50-100k range,

[neptune blue]

Property
You can't go wrong - rental return and capital gain means it takes care of itself

[xxx000]

Originally Posted by neptune blue

Property
You can't go wrong - rental return and capital gain means it takes care of itself

oh yes you can go wrong and lots have

decent shares always outstrip property in the long term

plus you can sell any portion of shares you want to when you want to and fast

[neptune blue]

Bull ****
I've been in super since 1994 and have $260,000 to show for it
The first house I built was in 1994 and cost $178,000 and it just sold for $580,000
The house that I'm in cost $700,000 to build in 2007 ( including land) it was valued at $1.1 million last year

Property values double pretty much very 7 to 10 years . Sure there are down turns but it always and has always recovered The GFC in 2009 cost me $50k in share devaluation

Have a look at the share market recently , as soon as China coughs the share market ***** its self

My accountant is in the middle of setting up a company's and trust so I can buy property with my super before the market crashes yet again. For those of you that have super put your money into cash - only going to pay 3-5% but at least you won't loose money , then when the market stabilises transfer back into shares

[Maka]

I would put it all into my golf equipment manufacturing company Or a legal brothel, no only joking!

cheer's, Maka

[Pis-ton broke]

i think you need to ask yourself, where is the economy and the world economy going. china in particular. chinas manufacturing is getting less and less if you listen to the stat,s. its seems to me that real estate in Sydney has flattened. the rumor that i hear is that a big recession is on its way. i would take my money out of shares. as self preservation is the goal. but i like gold. if you are serious, do some proper research.

[Pis-ton broke]

Originally Posted by neptune blue

My accountant is in the middle of setting up a company's and trust so I can buy property with my super before the market crashes yet again.

an off shore trust?

[Peuty]

Originally Posted by neptune blue

Bull ****
I've been in super since 1994 and have $260,000 to show for it
The first house I built was in 1994 and cost $178,000 and it just sold for $580,000
The house that I'm in cost $700,000 to build in 2007 ( including land) it was valued at $1.1 million last year

Property values double pretty much very 7 to 10 years . Sure there are down turns but it always and has always recovered The GFC in 2009 cost me $50k in share devaluation

Have a look at the share market recently , as soon as China coughs the share market ***** its self

My accountant is in the middle of setting up a company's and trust so I can buy property with my super before the market crashes yet again. For those of you that have super put your money into cash - only going to pay 3-5% but at least you won't loose money , then when the market stabilises transfer back into shares

Far out that advice is so bad I don't even know where to start.

Super isn't just shares and for anyone to put their money in cash for the long term is just shooting yourself in the foot.

Also, what super fund are you in that pays Cash at 4-5%? Cash will pay 1-3 % AT MOST, which doesn;t even cover the cost of inflation. So You may not "loose money", but your money will simply be worth less.

Anyway, if you are a member of a good, industry super fund, a Balanced option should be paying around 9-11% (give or take). QSuper (one of Australias biggest super funds by funds under management) had growth of 9% over the past 5 years in their Balanced option. And a fun fact, their Balanced option has trebeled in value since inception (1998) - even including the GFC!

I'd suggest that your super fund is either ripping you hard with fees/insurance or you are a prime example of how hard switching to cash can hit you in the long run.

[Pis-ton broke]

well, who said long run? just ride the storm out.

[wodahs]

Originally Posted by neptune blue

Have a look at the share market recently , as soon as China coughs the share market ***** its self

always a good time to buy when the market ***** its self and stocks are cheap

as apposed to when the market is stable and stock prices are high

[MITCHAY]

The only time I'd switch my super to cash is if I were close to retirement to protect what I have.

The GFC burnt people who were close to retirement when they were in volatile investments at the time same as those who are quite young who have it in low growth now will cost them later on.

[98TLS]

A year ago i would have said different but lost a good mate to cancer awhile back,great bloke doing all the right things then 3 months from the date of a visit to the doc with a sore back i helped lower him into his resting place...if i had a millon i would spend it on special times with those i treasure most.Plans are great doing its better.Probably a bit off topic but your thread had me thinking of my mate so will shuddupall the best with the investments though fella.

[Pis-ton broke]

sorry to hear that. it is tough to see your friends/family past on so quickly.

[Road_Warrior]

Hardtop Falcons

[PHANTMXR6]

Originally Posted by neptune blue

Property
You can't go wrong - rental return and capital gain means it takes care of itself

If property is worth so much, tell me why I can't sell or lease mine?

Been on the market for two years.
Dropped the price three times.

Can't and haven't been able to get tenants in for 6 months.

Tell me where that's a good investment.

[BradEL]

I would put it all into tipping dollars for the strip club

Wait did someone say invest

[blueoval]

I'd have a property portfolio of cheap-ish dwellings and rent them all out. I wouldn't really care if they make money or not, just as long as they don't go backwards. I don't trust super funds, not when they can just rob your fund without your approval whenever a financial crisis comes. Banks should be help accountable for their stupidity. Super funds should not be bailing them out so they can walk scotfree.

[neptune blue]

Originally Posted by Peuty

Far out that advice is so bad I don't even know where to start.

Super isn't just shares and for anyone to put their money in cash for the long term is just shooting yourself in the foot.

Also, what super fund are you in that pays Cash at 4-5%? Cash will pay 1-3 % AT MOST, which doesn;t even cover the cost of inflation. So You may not "loose money", but your money will simply be worth less.

Anyway, if you are a member of a good, industry super fund, a Balanced option should be paying around 9-11% (give or take). QSuper (one of Australias biggest super funds by funds under management) had growth of 9% over the past 5 years in their Balanced option. And a fun fact, their Balanced option has trebeled in value since inception (1998) - even including the GFC!

I'd suggest that your super fund is either ripping you hard with fees/insurance or you are a prime example of how hard switching to cash can hit you in the long run.

You have absolutely no idea about how my super fund is performing yet you make assumptions
I'm with AON and they have given me dividends between 11-14% when the market is good
If you read my post I said that given the uncertainty of the ASX you should transfer your money out of shares into cash till it stabilises, this way you don't loose money when the market crashes - and it will a soon as china don't need as much iron, gas or oil

Now Donald Trump - I have a number of very wealthy friends ,one of which is worth around $400 million. They all " dabble" in the share market but next to their primary business interestes they all have very significant property investments - Why would that be ?

I'm 55 and for me to retire on an income of $50,000 PA - which the "experts" say we will need to live some sort of a life, I need a million dollars invested at 5%
To do that I need to find around $20,000 PA on top of my employer contribution to put into super so that I reach that figure. I cant afford to do that as my children are sill at school and living at home and I have a mortgage.

Without the need to salary sacrifice I can set up my own managed fund using my super and my wife's super and buy a $500k house , borrowing about $200K
Rent it for $1500 a month ( average rental return in the area we are looking at) covering the interest and principle payment

Our employer super contributions go straight on the principle meaning that in about 13 years the house will be paid out or very little left to pay

The house I live in based on current trends will be paid of and worth around $1.6 million. So I sell up tax free, move into my rental and I get a salary of around $70k per year and I have no others debts - improved capital value of the second property and all this without having to find one additional dollar out of my own pocket .
If I was really smart I'd use the equity in my home to purchase a third propery and use the tax break to pay off the home I'm living in

The problem with super is that the government keeps changing the rules and that we are living in a global economy so if **** goes down on the other side of the world we cop it

Finally no matter what happens to your super the super company's always make money and always charge you regardless of how your personal investments are traveling

I've lived through the resession in the 90's and seen all the ups and downs. The one thing that has always performed consistently is property

I have simply decided to take charge of my own destiny instead of relying on a company that has its own profits as its primary objective , not mine.

Sticking your head in the sand and relying on people you don't even know, managing your money that can disappear in a day are deciding whether you live pension cheque to pension cheque.

There are also plenty of other problems with the ASX relating to franking ( they way it's done) and our lack of export manufacturing but that is a discussion for another thread

What I'm doing may not suit you or many other people but I've crunched the numbers and sort advise from successful people and from where I sit at the moment this is the best and easiest option.

[99AUXR]

Okay OP is a self funded retiree? . . .

[neptune blue]

Originally Posted by PHANTMXR6

If property is worth so much, tell me why I can't sell or lease mine?

Been on the market for two years.
Dropped the price three times.

Can't and haven't been able to get tenants in for 6 months.

Tell me where that's a good investment.

Horses for courses - take a look at the melbourne property market

[wodahs]

to me a share portfolio is like the rental property ownership situation

property prices are going to boom and not do so well - just like the share price

rental returns are like dividends - some times they pay good some times they don't (like an empty rental) some times there bad like a bad tenant trashed house

on both there can be pitfalls and losses

with shares you can invest lower amounts in a broader industry investment area

this was taught to me buy a bloke that was my boss when I managed his 6mill farm whilst he managed is cpa practise where he told me stick to shares but keep it diverse in the investment so when some arnt doing so well others will prosper and don't panic and sell the shares but work on the dividend return percentage principle for the bigger blue chip companies

[Ben73]

Originally Posted by PHANTMXR6

If property is worth so much, tell me why I can't sell or lease mine?

Been on the market for two years.
Dropped the price three times.

Can't and haven't been able to get tenants in for 6 months.

Tell me where that's a good investment.

Wrong area, house, something.

I recently sold my house. On the market on Thursday, offer on Friday, few more offers on the Saturday after open house, sold officially on the Tuesday. I got $15,000 more that I expected. The house was nothing special, just a 3, 1, 2 weatherboard in a average suburb that was increasing in popularity. Property value increased almost 9% per year for the time I had it. Not to bad really.

Saying property will always be a great investment or a terrible investment is pretty stupid either way because there are may factor which weigh into how it will work out for your individual property.


My personal shares (not super) have doubled in the 5 years I have had them. But I didn't invest much into shares, I was hesitant because if they nose dive you have nothing, if the property market crashes at least you still have a house to live in.

[MITCHAY]

If you have the discipline SMSF are the way to go really because you choose where it goes.

But from what I understand it can be very demanding on paperwork which is where super funds win.