Australian Money Forum

[bobchic]

Hello Everyone!!

I need some help!!

I am receiving $25000+ in the next month due to inheritence.

I have an idea what I would like to do with it but Im unsure if its realistic.

I have looked at term deposits but it really isnt that great of a return ($4100 return for two years at 8.40%)

Is there something better available? What should I expect as a healthy return that carries med-low risk?

Please offer any advice you can... I am very scattered at the moment as to what I should do (eg get a car, holiday and then invest)

Can anyone recommend an adivser in the Brisbane area? What should I expect from an adviser?

Thanks

Sonia

[WFFS]

My vote is with investing and then using some of the profit you make towards a holiday

[Miller]

Invest in a unit somewhere in West Sydney (As per link below)

http://www.news.com.au/business/money/s ... 51,00.html

Speaking seriously I would consider only two things: a deposit or gold/silver. Nowadays it's not about a return it's all about keeping the buying power.

[wulfgar]

I'd simply bank it! There is nothing in the way of other investments worth the trouble. Keep and eye on the banks however, at some point there will be a bank run. In which case I'd withdraw it and keep it in a shoebox.
Gold bullion will be a safe bet, but the better time to buy that stuff will be about a year from now.

[vilemerchant]

I agree I think the bank is the safest place for it until this credit crunch/impending oil crisis plays itself out.

[wulfgar]

Well there's a ton of risky investments out there to gamble on if you wish. Me, I'll stick cash and precious metal!

If you go for a term deposit, then maybe go for the 8 months and let it roll over on that basis. The banks are in trouble. I suspect the Argentine solution my be adopted if things hit the skids. The government limits how much money you can withdraw. So the banks are not without risks.
I bought gold 5 years ago and for a very safe investment, it's done allright. CBA shares bought at the same time would have returned less by now. And small amounts of gold are traded on a cash basis!
The latter half of 2009 will be a good time to move into gold again. So you may want to time your term deposit for that. I imagine gold could be bought then for 900 AUD an ounce and hit at least 1400 AUD before the middle of 2010.
There's is something very sick about a market that can't do better than some shiny metal shoved up your behind!

[bobchic]

Thanks for the input guys...

So you think paying out my debt would be the best thing? It is managed debt... Its not out of control.

Would it be best to keep paying off my debt and invest or pay off my debt and start paying to a savings plan what I would have paid to my debt?

Is $4000 pretty good for letting my money sit for 2 years?

term deposits just dont seem to earn that much.

Keep any ideas/advice coming

Thanks

[vilemerchant]

Rather than locking it away in a TD you could just stick it in ING or similar, i think they're paying 7.9% right now and your money is still available should you need it. You'd also be able to benefit if the RBA chose to increase rates again, which is quite possible.