What to do with $200 000 cash?

Discussion in 'Shares & Funds' started by Tim86, 12th Nov, 2021.

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  1. LROB

    LROB Well-Known Member

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    Doge or $hib

    Honestly speaking I'd be longing silver
     
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  2. icic

    icic Well-Known Member

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    Hahaha if that goes well you could retire in the next year;) @Tim86, if i am to spend the 200k i would park the 50k in reputable cryptos such as bitcoin or ethereum for a long term play of 5 years, another 50k in various long Asia ETFs and 50k in Conservative EFTs. Would keep the 50k as a rainy day fund. The 50k in cryptos might be reduce to nothing(highly unlikely), but the likely wildcard that will 10x your ROI in the next 5 years.
     
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  3. Banawarra

    Banawarra Well-Known Member

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    I think there will still be millions of people smoking, drinking, gambling and burning coal for many more years. Not at all interested
     
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  4. Sheldrick

    Sheldrick Well-Known Member

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    Vanguard has an auto invest function which might be useful

    No brokerage fees on Vanguard managed funds
    — $9 flat brokerage fee per trade when you buy or sell ETFs or ASX listed
    direct shares

    Just trying to toss up whether it's better going for Vanguard managed funds

    I'm thinking I might regularly (even daily) auto invest in vanguard managed funds. Not sure what the amount is, maybe $200 a day.

    And if the market drops due to a big event, inject a lot of cash where the brokerage fee won't be much
     
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  5. Hockey Monkey

    Hockey Monkey Well-Known Member

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    Whatever gets you investing regularly, but tracking the cost basis of $200 a day is going to be a nightmare. Just invest fortnightly or monthly and if you want to be more tax efficient, go with ETFs. VPI doesn’t support automation on ETFs yet, but pearler does if that is important to you.

    Investment Frequency Calculator
     
  6. ShireBoy

    ShireBoy Well-Known Member

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    If you already have the stomach to inject a lot of cash in one go (especially if there's a global event to trigger a massive drop), then statistically, you're better off just dumping it all in today and forget about it.
    There's been many studies of DCA versus lump sum investing, and they've all concluded that time in the market beats timing the market. Covid caused the ASX200 to drop 30+% in only a month, but then it started to recover to where we are now.

    This video in particular is a gold mine:

    Especially the analysis where Sven shows what happens if you miss the bottom of each crash, or also miss the top performing days of the market.
     
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  7. Sheldrick

    Sheldrick Well-Known Member

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    Thanks for the thoughts, that's helpful.

    I was a bit bummed that I missed the chance to invest when covid hit. I had funds but kept waiting for the market to go lower, and when it started recovering I was annoyed I didn't invest earlier so I ended up not doing anything.
     
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  8. ShireBoy

    ShireBoy Well-Known Member

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    Like they say, no one rings a bell for you when it hits the bottom.
    This is where DCA can help, though, you ride the bottom and keep accumulating.

    But like Hockey Monkey posted, you need to weigh up the cost of brokerage each time, unless you're in the Vanguard managed fund.

    Vanguard direct was actually how I started, too. Thinking that Bpaying a chunk of my payslip was the best option, but I decided on borrowing money to invest instead, which makes DCA a bit trickier. In my case it was better to just refinance what I wanted and then just invest the whole lot ASAP.
     
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  9. Tim86

    Tim86 Well-Known Member

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    I invested $5000 in vesg and $5000 in veth ETFs today. Currently up $3 Woot Woot!!!

    It would be a lot easier to just invest in a lump sum. Because we can just fix the homeloan to a certain amount, offset $100k with some cash in the bank as $60k needs to be paid to the ATO at tax time, and that will then leave me with $40k cash in the bank after tax. Remaining would be $140k more I could just lump into those two ETFs now. Or I DCA which means fixing less of the mortgage and being stung the extra 0.8% I could have been saving with the fixed rate etc...

    Anyway... Maybe I'll do a combo. DCA for a couple of months to test the waters and then just dump the rest in and then pretend the stock market doesn't exist for ten years.
     
  10. adrian_christian

    adrian_christian Well-Known Member

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    Does anyone else who’s into VESG think it’s been oversold?

    thinking of accumulating the VESG over the next few weeks/months.
     
  11. Whitecat

    Whitecat Well-Known Member

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    Can you buy shares in crypto rather than gets wallet etc? Is there a crypto listed fund?
     
  12. Whitecat

    Whitecat Well-Known Member

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    What did you end up doing?
     
  13. Whitecat

    Whitecat Well-Known Member

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    @Tim86 and others.

    I'm in I'm in a similar situation to Tim's original post.
    What I would like to know is how do I actually mechanically do this I don't own any shares so how do I actually buy the Vanguard funds I'm interested in index funds not managed funds but how do I actually buy the shares?

    Also I would be interested in buying shares in some other random companies just to have a bit of a play with a smaller amount of the money so what platform do I use that can buy me Vanguard shares (the bulk) but also allow me to buy random shares in beauty products or waste water technology or aged care (random examples) based on my research and speculation?
     
  14. AndyPandy

    AndyPandy Well-Known Member

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    The big banks plus companies like cmc etc provide you with share investment facility. I use commsec from CBA. You'll have to fill their form and sign up. Give it a try, it doesn't cost anything to sign up and have a play around.

    If you want to leverage then the NAB equity builder looks like a great product (no margin calls), however I'm not sure of they're accepting new accounts now.
     
  15. icic

    icic Well-Known Member

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    If you are not comfortable holding cryptos directly, you can get into companies or funds that holds a lot of BTC or ETH like Microstrategy, Greyscale Cryto fund, publicly listed miners that holds BTC like Hut8 and Cleanspark. Those are US organisations so you buy it like you buy Microsoft shares.
     
  16. Whitecat

    Whitecat Well-Known Member

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    There is an ETF on the ASX for crypto-associated companies.
    I also see they are trying to get approval to list a crypto etf (as in exposure to actual crypto currencies, not just their associated 'infrastructure')