Invest the "buffer"

i was thinking of going all in and putting all my cash buffer into the share market ..casino stocks especially.

 

Shares?

So just save it for the cup tomorrow?

 

A buffer is a buffer is a buffer .

So when the GFC hit and you had some vacancies and the buffer you'd invested in shares had shrunk , how would you be feeling .

Cliff

 

Definitely!
All on 'Heartbreak City' it's a sure thing

 

Like a beer....... buy CUB shares? Very cryptic tip

(I'll re-calc and massage the buffer then see what's left)

 

Not sure..this year's draw is a tough one. quite a few that have a chance of winning.
Picking a winner tomorrow might be a bit of a gamble (well..more than prev years)...
I'm going take a punt on a few different trifecta's...

 

How do you have equity sitting aside?

 

It would have to be the worst day to have a punt with all the muppets getting in making noise and shifting the odds around.... which can be a good thing if you're a seasoned punter and looking at the horses and form rather than the names and colours

 

I must apologise for starting the thread and trying to think outside the box.
Yes it's probably seen as to "risky" for most but there must be someone out there doing "higher risk" things out there with some idea's

 

The time frame for share investing is over 7 years. That is, if you invest in shares you shouldn't need to access the money before 7 years. Given that this is your buffer and you may need it at any time, ot contradicts the 7 year assumption.

In addition, money in an offset makes a guaranteed return of the home loan rate AFTER TAX.

If you have considered all that and still want to invest the buffer, go for it.

Not advice .

 

Ok cool.
So let's forget the word"buffer" was used and there's 40k to invest.

Surely there are people out there that borrow money to invest??

 

Honey, is it equity or cash? Makes all the difference.

 

Do you have non-deductible debt @bob shovel?
I have similar cash at the the moment, which overtime I'll be looking to debt-recycle into shares
Excess funds above buffer will payoff non-deductible, new loan / redraw/split taken out to purchase high yielding shares
Using dividends to continue to paydown debt

Keeping cash buffer for SANF and equity gains for future investing.

 

Sounds to me that the 'buffer' may be borrowed money.

 

the bookies will be the big winners tommorow.
I suspect betting volumes in dollar terms will still be reasonably high, and with unlikely chances of a clear winner, the bookies will be looking at a good pay day.

 

58% of my buffer is cash (in offset), 42% is in shares/ETFs.

Current return on the share/ETF component is 8% ( gains + dividends ).

 

Pfft...
100% of my buffer is on red number 7 as I write...

 

Not me. I am boring, boring, boring. My buffer is cash sitting in the offset account. Was great when interest rates were 7%!

 

Disclaimer - No advice, general information only....

I like the way you put that Cliff, I have specialised in debt recycling strategies for over 12 years. Having seen pretty much every scenario with these types of plans, over time I have learned that risk management is THE highest priority and you should NEVER invest your buffer UNLESS you have an excess available above your appropriate buffer size. Why??.....because as soon as you deviate from the correct approach towards risk management you are asking for trouble.

 

58% buffer? That's heaps.