One more drop in interest rates and my bank will be charging me INTEREST or if you like A FEE to hold my cash.
We had a bucket of cash come due to be rolled over and we shopped around and the best we could get was 0.3%
That is $300 for $100,000. That would keep me in supply of a cuppa coffee once a week for a year.
Kind of reminds me of my first job after leaving school at 14 years of age way back in 1953, when I was given the gross sum of 3 pounds a week or $6.00 a week for 40 hours work. ( Less because of tax.)
Sort of bring a tear to one's eyes, or is it back to the past.
Anyway, Do we hide it under the mattress? or buy more shares.
I guess it is a risk in what ever one does.
But we still get 3 squares and a half a bed a day, so life is pretty bloody good in 2021.
Jay&Dee
Bobdown said
04:04 PM May 21, 2021
JayDee,
Check out la Trobe Financial, if you are prepared to lock away for 12 months or longer they will give you 4.35%, 90 day is 2.25% I think. I have online account and transfer to my bank regularly as needed.
PS. Nothing to do with the Company, personally, and am not a Financial Advisor either.
Cheers Bob
Izabarack said
04:33 PM May 21, 2021
Pick the right Crypto and you will triple your money by Xmas.
Corndoggy said
05:33 PM May 21, 2021
As our term deposits come out they are going into the wife's super account. Didn't really know what to do with the money so term deposits it was. Early next year she can retire and a great slab of her money in super will be transferred into a retirement income stream account. Minimum amount will be left in her super to keep it open in case more money needs to go in there. Whilst the money in it goes up and down every day I've been happy with how mine has been going so far. I have only retired since the start of this year though.
peter67 said
05:34 PM May 21, 2021
Put it in an offset account against your kids mortgages, it knocks the interest rate down on their loans. The bank was giving me nothing while my cash just sat there.
Collo said
06:20 PM May 21, 2021
If you are prepared to take a risk in the share market, I would invest in the listed investment companies, Argo and Australian Foundation.
We have enjoyed 40% capital growth over the last four years with dividends of 3% fully franked(no tax).
If you have internet banking, you can set up online trading...its fairly easy... and trade for $25 per trade ( at least it was in 2017)
Collo.
-- Edited by Collo on Friday 21st of May 2021 06:24:02 PM
Are We Lost said
06:36 PM May 21, 2021
If you want the security of a bank, with government guarantee, try ING. The standard rate is 0.05%, but if you meet some simple conditions they pay another 1.3%. The simple conditions to be met each month for the bonus are to do 5 purchase transactions, deposit at least $1,000 from an external source, and grow your savings by any amount above the interest paid. Withdraw instantly at any time. No bank fees and they refund you any ATM fees.
Bobdown mentioned LaTrobe. I looked into that a few weeks ago. It's a mortgage investment scheme. So if there is a real estate crash and people have trouble paying their mortgages, your investment is at risk. Their website says investors have not lost capital since 2002.
Dicko1 said
07:32 PM May 21, 2021
Corndoggy wrote:
As our term deposits come out they are going into the wife's super account. Didn't really know what to do with the money so term deposits it was. Early next year she can retire and a great slab of her money in super will be transferred into a retirement income stream account. Minimum amount will be left in her super to keep it open in case more money needs to go in there. Whilst the money in it goes up and down every day I've been happy with how mine has been going so far. I have only retired since the start of this year though.
Your money actually stays in the super account.I have a retirement income stream and it is just a fortnightly chunk of money taken from my super and put into my bank account. Your super still gets a good interest rate. Interest rates for the last few years have been excellent. Even covid had little effect. If you have spare cash...put it into super. Around 10% at the moment for many super funds. Money in the bank is a no go. After 6 years of early retirement and taking money out every fortnight I am only down a few thousand on my original retirement amount...and living well!!.
-- Edited by Dicko1 on Friday 21st of May 2021 07:33:42 PM
-- Edited by Dicko1 on Friday 21st of May 2021 07:35:34 PM
bgt said
07:41 PM May 21, 2021
Managed funds are a reasonable bet.
montie said
07:42 PM May 21, 2021
Cash in the bank, whilst zero risk, will return 5/8ths of bugger all.
Low risk investments are blue chip shares like banks or mining or of course real estate.
You can have a play in the share market for a relatively small investment but stick with long term blue chip shares.
Real estate is always a gold brick investment long term with solid returns. It's a tough market for retirees at the moment and unfortunately that's not going to change anytime soon.
I am not a financial advisor but if you have cash parked in the bank at the moment I would suggest you consult one.
Just remember the higher the return the higher the risk.
-- Edited by montie on Friday 21st of May 2021 08:12:50 PM
Corndoggy said
08:23 PM May 21, 2021
My "super account" was closed and the funds were transferred into a new "income stream" account, still being managed by the same mob. I could have kept the super account open by leaving a small amount in it, only to allow any new money to be forward into it. The retirement income stream cannot have anything added to it once set up. Is a way around that though. Will keep the wifes open for any extra money that comes our way. Will live off the minimum withdrawal from hers and the rest from mine. So far from my payments made to me, we have not "used" any money first invested.
montie said
08:56 PM May 21, 2021
bgt wrote:
Managed funds are a reasonable bet.
The problem with managed funds is you are in the hands of the manager....If he makes good decisions then it makes good returns.
On the other hand if I'm going to lose my own money I want to do it myself!
I manage my own investments......If it goes pear shaped I got nobody to blame!
landy said
09:27 PM May 21, 2021
Have a look at the returns from Ubank ( NAB ) and also Macquarie bank and Check out there bonus rates.
Bobdown said
09:28 PM May 21, 2021
Are We Lost wrote:
If you want the security of a bank, with government guarantee, try ING. The standard rate is 0.05%, but if you meet some simple conditions they pay another 1.3%. The simple conditions to be met each month for the bonus are to do 5 purchase transactions, deposit at least $1,000 from an external source, and grow your savings by any amount above the interest paid. Withdraw instantly at any time. No bank fees and they refund you any ATM fees.
Bobdown mentioned LaTrobe. I looked into that a few weeks ago. It's a mortgage investment scheme. So if there is a real estate crash and people have trouble paying their mortgages, your investment is at risk. Their website says investors have not lost capital since 2002.
I had my own self managed super fund, which with the help of the Accountant closed down 4.5 years ago, we told about La Trobe and decided to put most into a 12 month account and some into a 48 hour account.
We have had the interest paid into our bank every month (originally 5,75%) and not touched the principal. occasionally transfer some from the 48 hour account to our bank to top up when spending arises.
Have told friends and family who had money to invest and they are very happy, better than 0.5%..........safe as houses.
Cheers Bob
Tony LEE said
05:37 AM May 22, 2021
I prefer to let someone else do the worrying.
Our money is in a REST pension fund in the highest return options they have. Took a bit of a hit during the GFC but despite paying a pretty comfortable income and ratting it to buy motorhomes, it is still 38% higher than the low point.
BTW is there any point in keeping super funds open after going to a pension fund because I thought you couldn't make further contributions unless you could satisfy a work test
-- Edited by Tony LEE on Saturday 22nd of May 2021 05:38:13 AM
JayDee said
08:59 AM May 22, 2021
Hi folks
Thanks for the comments.
Has anyone given thought to Exchange Traded Funds (ETF's) such as Vanguard Australia.
My research tells me Vanguard ETF's can be bought and sold on the ASX.
ETF such Vanguard Australian Shares (Code ) VAS is paying a good dividend and is 80% franked.??????
Also, My understanding of VAS is that you are investing the ASX 300 and therefore your investment is in each and every company in the ASX 300 companies.
Like I said can be bought and sold on the ASX stock exchange.
So My Question is ........Is this a safer risk profile with Vanguard say versus personal share investment?
I guess investment today is a mine field.
Jay&Dee
bgt said
10:28 AM May 22, 2021
The way I see it is you have two options. Put your money in a bank, managed fund or whatever and pray the market is kind. Or you manage your own funds. If you manage your own funds you have to be hands on and be prepared to take the hits. We have been with the same managed fund for 26 years. Some years we got 29%. Other years we got -5%. It's all a risk. So is following advice from us here in this forum!!!
Good luck. For me I'll take the risk on someone else managing my fund. No not the next door neighbor.
FWIW our daughter and son inlaw have zero financial brains. They admit it. He once went to 5 financial planners to get an answer to a problem. The 5th financial planner told him what he wanted to hear. Job done. I forget how much it all cost him but I recall something like $1000.00. I could have told him what he wanted to hear for $1.00. Point being we all have a comfort zone. And only you know what that is.
Whenarewethere said
11:01 AM May 22, 2021
In other words the sort of people who sign up for a quarterly maintenance plan for their toilet paper roll holder!
Dicko1 said
12:13 PM May 22, 2021
JayDee wrote:
One more drop in interest rates and my bank will be charging me INTEREST or if you like A FEE to hold my cash.
We had a bucket of cash come due to be rolled over and we shopped around and the best we could get was 0.3%
That is $300 for $100,000. That would keep me in supply of a cuppa coffee once a week for a year.
Kind of reminds me of my first job after leaving school at 14 years of age way back in 1953, when I was given the gross sum of 3 pounds a week or $6.00 a week for 40 hours work. ( Less because of tax.)
Sort of bring a tear to one's eyes, or is it back to the past.
Anyway, Do we hide it under the mattress? or buy more shares.
I guess it is a risk in what ever one does.
But we still get 3 squares and a half a bed a day, so life is pretty bloody good in 2021.
Jay&Dee
Do you have a super account?
msg said
01:17 PM May 22, 2021
No where to go if we get a cashless society. May not get the opportunity to spend whats under the mattress.
Tony Lee wrote: " BTW is there any point in keeping super funds open after going to a pension fund because I thought you couldn't make further contributions unless you could satisfy a work test"
From personnel experience only. I have no knowledge with other situations. I had a small "ëxtra" superfund that got seriously depleted during GFC. When I retired 10yrs ago, I never got around to collecting it. I just left it. Over the years it has been earning interest and now is valued greater than I started off with because it was earning more than the interest I got in the bank. So no, you can't make further contributions but you can leave it alone (until they get sick of you and transfer to ATO) and the value will grow better than bank interest.
JayDee said
05:57 PM May 22, 2021
Dicko1 wrote:
JayDee wrote:
One more drop in interest rates and my bank will be charging me INTEREST or if you like A FEE to hold my cash.
We had a bucket of cash come due to be rolled over and we shopped around and the best we could get was 0.3%
That is $300 for $100,000. That would keep me in supply of a cuppa coffee once a week for a year.
Kind of reminds me of my first job after leaving school at 14 years of age way back in 1953, when I was given the gross sum of 3 pounds a week or $6.00 a week for 40 hours work. ( Less because of tax.)
Sort of bring a tear to one's eyes, or is it back to the past.
Anyway, Do we hide it under the mattress? or buy more shares.
I guess it is a risk in what ever one does.
But we still get 3 squares and a half a bed a day, so life is pretty bloody good in 2021.
Jay&Dee
Do you have a super account?
Hi Dicko2
The answer is NO. ( Unfortunately)
Jay&Dee
Warren-Pat_01 said
09:43 PM May 22, 2021
For those of you who have a crystal ball! There is a cutoff age for people to put money into a super account & my managed funds are pulling a bit less than 1% at the moment.
A friend in Adelaide (afraid of the Reds, Centrelink?) used to keep a lot of his funds in tins in his garden. Now that he's gone, I wonder whether he recovered it all or if the new owners will find some cash while digging up the veges?
JayDee said
08:29 AM May 23, 2021
Warren-Pat_01 wrote:
For those of you who have a crystal ball! There is a cutoff age for people to put money into a super account & my managed funds are pulling a bit less than 1% at the moment.
A friend in Adelaide (afraid of the Reds, Centrelink?) used to keep a lot of his funds in tins in his garden. Now that he's gone, I wonder whether he recovered it all or if the new owners will find some cash while digging up the veges?
Wow!!! The tin in the back yard.
This could see /be a remark of the movie of yesterday year called. Circa 1957 to 1959.
Jay&Dee
God's little acre
Possum3 said
10:17 AM May 23, 2021
The Grandfather buried around 500 pound next to the outhouse on family farm - a lot of money in the 50's - prior to the 1956 floods that totally demolished all buildings including house paddock fences - he never ever found the spot again.
Tony LEE said
02:17 PM May 23, 2021
My father, never able to accumulate much spare cash, used to keep the shop takings buried in the 44 gallon drum where the chook food was kept.
RE the query about Vanguard. For many years I put any spare cash spread around the various Vanguard funds, mostly in the shares ones and they never went backwards. Two kids are doing the same and they are more than happy with the returns. I imagine their offerings on the exchange would equally track the stock market and would be equally secure
JayDee said
06:16 PM May 23, 2021
Tony Lee,
Thanks for the positive comment re Vanguard.
Yes!!!! My research says to me t4o buy EFT ( VAS) and hold and hold and hold and add further investments.
VAS returned around 6% including 80% franking credits.
Not a bad return.
Jay&Dee
Dicko1 said
11:40 AM May 24, 2021
JayDee wrote:
Dicko1 wrote:
JayDee wrote:
One more drop in interest rates and my bank will be charging me INTEREST or if you like A FEE to hold my cash.
We had a bucket of cash come due to be rolled over and we shopped around and the best we could get was 0.3%
That is $300 for $100,000. That would keep me in supply of a cuppa coffee once a week for a year.
Kind of reminds me of my first job after leaving school at 14 years of age way back in 1953, when I was given the gross sum of 3 pounds a week or $6.00 a week for 40 hours work. ( Less because of tax.)
Sort of bring a tear to one's eyes, or is it back to the past.
Anyway, Do we hide it under the mattress? or buy more shares.
I guess it is a risk in what ever one does.
But we still get 3 squares and a half a bed a day, so life is pretty bloody good in 2021.
Jay&Dee
Do you have a super account?
Hi Dicko2
The answer is NO. ( Unfortunately)
Jay&Dee
possible for you and the other half to open a super account?.....I dont know if your retired or ineligible to open an account.. I always keep cash at home (hidden well)....bank is a waste and being on a small part pension I must be careful with any income
JayDee said
08:55 AM May 26, 2021
We had a Financial Advisor, But we could not justify the huge fees involved. The fees included the F.A and then MacQuaries fees plus admin charges.plus plus.
Our investments are now totally on the ASX (Shares) which returned us circa 7.5% including Fully franked $$$$.
So we have just invested the roll over dollars I spoke of in Vanguard Exchange Traded Funds (ETF.)
Mainly in Vanguard Australian Shares (VAS) and Vanguard High Yield, (VHY).
This is our decision.
Any comment I make re finances is purely our own decision and not meant in any way to be financial advice.
Like I tell my friends ......The best advice I can give you is.
One more drop in interest rates and my bank will be charging me INTEREST or if you like A FEE to hold my cash.
We had a bucket of cash come due to be rolled over and we shopped around and the best we could get was 0.3%
That is $300 for $100,000. That would keep me in supply of a cuppa coffee once a week for a year.
Kind of reminds me of my first job after leaving school at 14 years of age way back in 1953, when I was given the gross sum of 3 pounds a week or $6.00 a week for 40 hours work. ( Less because of tax.)
Sort of bring a tear to one's eyes, or is it back to the past.
Anyway, Do we hide it under the mattress? or buy more shares.
I guess it is a risk in what ever one does.
But we still get 3 squares and a half a bed a day, so life is pretty bloody good in 2021.
Jay&Dee
JayDee,
Check out la Trobe Financial, if you are prepared to lock away for 12 months or longer they will give you 4.35%, 90 day is 2.25% I think. I have online account and transfer to my bank regularly as needed.
PS. Nothing to do with the Company, personally, and am not a Financial Advisor either.
Cheers Bob
Pick the right Crypto and you will triple your money by Xmas.
If you are prepared to take a risk in the share market, I would invest in the listed investment companies, Argo and Australian Foundation.
We have enjoyed 40% capital growth over the last four years with dividends of 3% fully franked(no tax).
If you have internet banking, you can set up online trading...its fairly easy... and trade for $25 per trade ( at least it was in 2017)
Collo.
-- Edited by Collo on Friday 21st of May 2021 06:24:02 PM
Bobdown mentioned LaTrobe. I looked into that a few weeks ago. It's a mortgage investment scheme. So if there is a real estate crash and people have trouble paying their mortgages, your investment is at risk. Their website says investors have not lost capital since 2002.
Your money actually stays in the super account.I have a retirement income stream and it is just a fortnightly chunk of money taken from my super and put into my bank account. Your super still gets a good interest rate. Interest rates for the last few years have been excellent. Even covid had little effect. If you have spare cash...put it into super. Around 10% at the moment for many super funds. Money in the bank is a no go. After 6 years of early retirement and taking money out every fortnight I am only down a few thousand on my original retirement amount...and living well!!.
-- Edited by Dicko1 on Friday 21st of May 2021 07:33:42 PM
-- Edited by Dicko1 on Friday 21st of May 2021 07:35:34 PM
Cash in the bank, whilst zero risk, will return 5/8ths of bugger all.
Low risk investments are blue chip shares like banks or mining or of course real estate.
You can have a play in the share market for a relatively small investment but stick with long term blue chip shares.
Real estate is always a gold brick investment long term with solid returns. It's a tough market for retirees at the moment and unfortunately that's not going to change anytime soon.
I am not a financial advisor but if you have cash parked in the bank at the moment I would suggest you consult one.
Just remember the higher the return the higher the risk.
-- Edited by montie on Friday 21st of May 2021 08:12:50 PM
The problem with managed funds is you are in the hands of the manager....If he makes good decisions then it makes good returns.
On the other hand if I'm going to lose my own money I want to do it myself!
I manage my own investments......If it goes pear shaped I got nobody to blame!
I had my own self managed super fund, which with the help of the Accountant closed down 4.5 years ago, we told about La Trobe and decided to put most into a 12 month account and some into a 48 hour account.
We have had the interest paid into our bank every month (originally 5,75%) and not touched the principal. occasionally transfer some from the 48 hour account to our bank to top up when spending arises.
Have told friends and family who had money to invest and they are very happy, better than 0.5%..........safe as houses.
Cheers Bob
I prefer to let someone else do the worrying.
Our money is in a REST pension fund in the highest return options they have. Took a bit of a hit during the GFC but despite paying a pretty comfortable income and ratting it to buy motorhomes, it is still 38% higher than the low point.
BTW is there any point in keeping super funds open after going to a pension fund because I thought you couldn't make further contributions unless you could satisfy a work test
-- Edited by Tony LEE on Saturday 22nd of May 2021 05:38:13 AM
Thanks for the comments.
Has anyone given thought to Exchange Traded Funds (ETF's) such as Vanguard Australia.
My research tells me Vanguard ETF's can be bought and sold on the ASX.
ETF such Vanguard Australian Shares (Code ) VAS is paying a good dividend and is 80% franked.??????
Also, My understanding of VAS is that you are investing the ASX 300 and therefore your investment is in each and every company in the ASX 300 companies.
Like I said can be bought and sold on the ASX stock exchange.
So My Question is ........Is this a safer risk profile with Vanguard say versus personal share investment?
I guess investment today is a mine field.
Jay&Dee
Good luck. For me I'll take the risk on someone else managing my fund. No not the next door neighbor.
FWIW our daughter and son inlaw have zero financial brains. They admit it. He once went to 5 financial planners to get an answer to a problem. The 5th financial planner told him what he wanted to hear. Job done. I forget how much it all cost him but I recall something like $1000.00. I could have told him what he wanted to hear for $1.00. Point being we all have a comfort zone. And only you know what that is.
In other words the sort of people who sign up for a quarterly maintenance plan for their toilet paper roll holder!
Do you have a super account?
Tony Lee wrote: " BTW is there any point in keeping super funds open after going to a pension fund because I thought you couldn't make further contributions unless you could satisfy a work test"
From personnel experience only. I have no knowledge with other situations. I had a small "ëxtra" superfund that got seriously depleted during GFC. When I retired 10yrs ago, I never got around to collecting it. I just left it. Over the years it has been earning interest and now is valued greater than I started off with because it was earning more than the interest I got in the bank. So no, you can't make further contributions but you can leave it alone (until they get sick of you and transfer to ATO) and the value will grow better than bank interest.
Hi Dicko2
The answer is NO. ( Unfortunately)
Jay&Dee
A friend in Adelaide (afraid of the Reds, Centrelink?) used to keep a lot of his funds in tins in his garden. Now that he's gone, I wonder whether he recovered it all or if the new owners will find some cash while digging up the veges?
Wow!!! The tin in the back yard.
This could see /be a remark of the movie of yesterday year called. Circa 1957 to 1959.
Jay&Dee
God's little acre
Thanks for the positive comment re Vanguard.
Yes!!!! My research says to me t4o buy EFT ( VAS) and hold and hold and hold and add further investments.
VAS returned around 6% including 80% franking credits.
Not a bad return.
Jay&Dee
possible for you and the other half to open a super account?.....I dont know if your retired or ineligible to open an account.. I always keep cash at home (hidden well)....bank is a waste and being on a small part pension I must be careful with any income
Our investments are now totally on the ASX (Shares) which returned us circa 7.5% including Fully franked $$$$.
So we have just invested the roll over dollars I spoke of in Vanguard Exchange Traded Funds (ETF.)
Mainly in Vanguard Australian Shares (VAS) and Vanguard High Yield, (VHY).
This is our decision.
Any comment I make re finances is purely our own decision and not meant in any way to be financial advice.
Like I tell my friends ......The best advice I can give you is.
DON'T ASK ME FOR FINANCIAL ADVICE.
Jay&Dee