Lots of cash. whet to put it?

Discussion in 'Shares & Funds' started by Travelbug, 11th Aug, 2019.

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  1. Travelbug

    Travelbug Well-Known Member

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    Hi.
    I'm a property gal so don't know much about managed funds, LIC's, ETF's.

    I have a friend with more than $500,000 to invest. She has it in the bank at 1.9%.

    She was talking of buying a unit cash in Sydney but I don't think the returns are there considering the lack of CG in the near future.
    She has no idea and is asking me what she should do.

    She wants something that needs no work as she lives overseas, but is Australian.

    She doesn't need the cash flow at the moment but will in 2 years, when she retires.

    Any advice welcome. Thanks.
     
    Travelbug, 11th Aug, 2019
    #1
  2. Gestalt

    Gestalt Well-Known Member

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    Impossible to be sure without knowing goals, risk profile etc.

    But if she wants a minimal effort, low cost, highly diversified fund for the long term (10 years plus) and has some tolerance for risk, consider a diversified Vanguard ETF like VDGR which invests in a range of domestic and international shares and fixed interest.

    https://api.vanguard.com/rs/gre/gls/1.3.0/documents/11893/au

    Not advice.
     
    Last edited: 11th Aug, 2019
    Gestalt, 11th Aug, 2019
    #2
  3. Indifference

    Indifference Well-Known Member

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    This sort of situation is often more about questions rather than answers.

    Does she own her own home?
    Is her Super maxed out?
    Has she used the Super 300k bring-forward limit?
    Does she have any other investments?
    Does she have any debt?
    What age bracket?

    I'd start there ^^^^ ....
     
    Indifference, 11th Aug, 2019
    #3
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  4. Sackie

    Sackie Well-Known Member

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    I can help her 'invest' it. :D
     
    Sackie, 11th Aug, 2019
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  5. kierank

    kierank Well-Known Member

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    I hear my “rate of return” is bigger than yours ;).
     
    kierank, 11th Aug, 2019
    #5
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  6. Scott No Mates

    Scott No Mates Well-Known Member

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    Stand in line @Sackie, I know a Nigerian Prince who needs a little leg up :rolleyes:
     
    Scott No Mates, 11th Aug, 2019
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  7. Sackie

    Sackie Well-Known Member

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    I'll show you mine if you show me yours :D:p
     
    Sackie, 11th Aug, 2019
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  8. Sackie

    Sackie Well-Known Member

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    Happy to paint me any color.
     
    Sackie, 11th Aug, 2019
    #8
  9. trinity168

    trinity168 Well-Known Member

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    trinity168, 11th Aug, 2019
    #9
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  10. Archaon

    Archaon Well-Known Member

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    What is this?
     
    Archaon, 11th Aug, 2019
    #10
  11. Travelbug

    Travelbug Well-Known Member

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    Yes to own home rented out
    No Super. Hasn't lived in Australia for over 30 years.
    300k doesn't apply.
    No investments.

    50'S. Will retire in 2 years.

    She just wants something that will give better returns than putting it in the bank. Obviously not risky. That's why I thought a managed fund or something simple like that. She wants an income when she retires. 1.9% interest won't do it.

    Thanks Trinity.will have a read
     
    Travelbug, 11th Aug, 2019
    #11
  12. Trainee

    Trainee Well-Known Member

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    Managed funds can also be risky. Simple and risky are different things.

    How much income does she need? Be realistic, not ‘as much as she can get’ because she doesnt understand risk.
     
    Trainee, 11th Aug, 2019
    #12
  13. Indifference

    Indifference Well-Known Member

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    The bring-forward rule allows eligible Super fund members to make up to $300,000 of non-concessional (after-tax) contributions above the non-concessional contributions cap over three years.
     
    Indifference, 12th Aug, 2019
    #13
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  14. Richard

    Richard Active Member

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    What will happen to property if we go into negative interest rates?
     
    Richard, 12th Aug, 2019
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  15. Propertunity

    Propertunity Well-Known Member

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    I'd like to think that the bank will be paying us to take their money and buy property or shares with it. Can we fix a -ve IR for 30 years? Probably not going to happen :(
     
    Propertunity, 12th Aug, 2019
    #15
  16. Propertunity

    Propertunity Well-Known Member

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    Without casting any aspersions on you @Travelbug , this indicates she really has no clue at all. She should be talking with a Financial Planner.
     
    Propertunity, 12th Aug, 2019
    #16
  17. The Y-man

    The Y-man Moderator Staff Member

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    It's a very tight timeframe - it's one of those times I'd say "see a (good) financial planner".

    The Y-man
     
    The Y-man, 12th Aug, 2019
    #17
  18. geoffw

    geoffw Moderator Staff Member

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    How do you find a *good* financial planner?

    They are just as likely to recommend a spread of managed funds (1.5% +), possibly in a wrap account (1%), with themselves being paid to monitor the investments (1%). Up to 4.5% on investments returning 6%.

    I went to an FP ($8k), then applied their recommended spread to ETFs instead of managed funds, no wrap and no ongoing monitoring. After the initial fee, an ongoing .1% to .2%.
     
    geoffw, 13th Aug, 2019
    #18
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  19. The Y-man

    The Y-man Moderator Staff Member

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    $65 gazillion question! :D As per finding a "good" broker, may need to go with "trusted" recommendations

    The Y-man
     
    The Y-man, 13th Aug, 2019
    #19
  20. FXD

    FXD Well-Known Member

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    FXD, 13th Aug, 2019
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