Investing Money

noobert

My family has recently come into a fair amount of money (~15k AUD/11.5k USD with about that much again on its way) and we are looking for a way to a invest a portion it. So I'm hitting H/A for advice and ideas.

I personally dump my savings into an account that provides 6% interest p.a. But my savings are nothing close to this amount of money, and i mainly use the account so i don't splurge and spend it all. Using the same account with this much money we would be earing $925 ($710USD) a year.

I know there are lots of options when it comes to investing money, but my parents really need this to work out for them if they want to live comfortably once they retire. So really, any help at all would be appreciated.

PirateJon

That's not very much. At all. Not nearly enough for two to retire on unless they live in a box and eat cat food.


You should pay off any debt. Credit cards? Auto loans? anything that charges interest? Kill it dead.

If you were in the US i'd say Roth IRA for the rest, but I dunno if that's even an option in a place where toilets flush backwards.

Wylder

"How do I use this money to best help me retire" is a pretty complicated question in Australia because of our retardedly messy superannuation/retirement law. I mean, I work as a financial planner, and there is just no simple answer to that.

A good place to start is "How old are they?"

Thanatos

PirateJon wrote: »

That's not very much. At all. Not nearly enough for two to retire on unless they live in a box and eat cat food.


You should pay off any debt. Credit cards? Auto loans? anything that charges interest? Kill it dead.

If you were in the US i'd say Roth IRA for the rest, but I dunno if that's even an option in a place where toilets flush backwards.

You do want to pay off high-interest debts such as credit cards and auto loans. You do not want to pay down low-interest student loans, or home loans, because the interest on those is tax-deductible, which mitigates a substantial portion of it, and is usually enough to make it so that you're better off investing the money than dumping it into loans.

EDIT: Wait, Australia? Nevermind. No idea what the fuck you should do with it.

hamburger helper

That could be a down payment on a piece of real estate.

Buy and rent out a house, gain equity on it and maybe a tiny bit extra from the rent (after mortgage payments). Then in 5-10 years repeat!

Eventually your houses will be paid off and you can re-mortgage the whole lot and have a shit-ton of tax-free retirement monies OR sit happily earning passive income each month off the tenants.