# 40k... no idea where to invest!



## sweetb (9 Dec 2010)

First post so be nice! 
I have been looking around here for the past hour, but this sort of stuff changes so regularly... 

I guess my big question is what would you do with 40,000? I'm not looking for high risk. It's currently between 3 accounts - between 2 & 3 %

Should I leave it where it is? Should I invest it? Where? and importantly, How? I have never invested money before... I don't know where to start...or where to even find who to ask!

Thanks


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## Greta (9 Dec 2010)

sweetb said:


> I have never invested money before... I don't know where to start...or where to even find who to ask!



I'd recommend starting with a few books on personal finance - can buy them in a bookstore. Once you learn about personal finance, investing, saving etc, you'll be a lot clearer where to start


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## pAnTs (9 Dec 2010)

sweetb said:


> First post so be nice!
> I have been looking around here for the past hour, but this sort of stuff changes so regularly...
> 
> I guess my big question is what would you do with 40,000? I'm not looking for high risk. It's currently between 3 accounts - between 2 & 3 %
> ...



Hi Sweetb I was asking similar questions around here too, I was chatting to an accountant today who said if he was in my position he would lodge it into the postoffice. He reckoned that you could get a 48% return over 10 years! if you can put money away for that long seems good, I haven't looked into it though


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## PMU (11 Dec 2010)

pAnTs said:


> I was chatting to an accountant today who said if he was in my position he would lodge it into the postoffice. He reckoned that you could get a 48% return over 10 years! if you can put money away for that long seems good, I haven't looked into it though


48% return over 10 years is compounding at  4% p.a.. So you would have to find an account that pays at least 4% interest p.a. over ten years.   If inflation in that period is 2% p.a. your real return is about  2.42%. It’s actually less that that when DIRT is taken into account.


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## farmerette (12 Dec 2010)

PMU said:


> 48% return over 10 years is compounding at 4% p.a.. So you would have to find an account that pays at least 4% interest p.a. over ten years. If inflation in that period is 2% p.a. your real return is about 2.42%. It’s actually less that that when DIRT is taken into account.


 
if you put it in post office bonds , thier is no DIRT


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## Nicky (12 Dec 2010)

Hi sweetb

If I were you I would concider the following chart, this is not advice, just thought
http://uk.finance.yahoo.com/echarts...osshair=on;ohlcvalues=0;logscale=off;source=;


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## bogle (12 Dec 2010)

sweetb I agree with Greta's advise. Self educate yourself first.
I found these two books good - "A Random Walk Down Wall Street" by Burton G Malkiel and "The Little Book of Common Sense Investing" by John C Bogle


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## Ethan 1 (12 Dec 2010)

Gold, Silver & Oil ETF. 

IMHO you are taking a high risk leaving your money on deposit accounts at the moment. Medium term the € will devalue, at least via debt restructure (so called € bond) and by most, if Germany leave and reintroduce their own currency.


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## P A J (12 Dec 2010)

Hi SweetB,

this is my first post also. However, I am a Financial Advisor and am familiar with your predicament. You need to find an Independent and Trusted Advisor to help you identify what type of investor you are. There are hundreds of deposit accounts out there never mind other options. There is no real quick fix. I recommend you stay in a deposit type arrangement until you decide on issues like on the time frame, returns, and relationship with risk for this money. Is there short term expensive debt in credit cards, unsecured loans etc. that needs to be examined (repaid!). When you have the groundwork complete and determined the approach to investing best suited to you, you can begin to look at product. Avoid "product pushers" at all costs. Pay a fee and get some solid advise first about the type of investor you are. Like everything, you can explore options over time once you have a secure base. PAJ


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## squaw (13 Dec 2010)

Hi Ethan 1,
What is your opinion on moving money to a non Euro deposit a/c so (e.g. Aus Dollar) and if so, when would you move it?


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## justforgroup (13 Dec 2010)

Ethan 1 said:


> Gold, Silver & Oil ETF.
> 
> IMHO you are taking a high risk leaving your money on deposit accounts at the moment. Medium term the € will devalue, at least via debt restructure (so called € bond) and by most, if Germany leave and reintroduce their own currency.



And Gold, Silver and Oil are not? Are you serious? Most people will tell you gold is in a bubble now. Silver & Oil are way too volatile?

So what if the € devalues? Unless we return to bartering, you'll still need €s in your pocket to buy stuff.

And someone else is suggesting turning the OP into a currently speculator. Guys - what r u trying to do to the poor woman! 

OP - PAJ makes sense: simply leave it in a deposit account. It doesn't matter which, despite all the hysteria that appears on this board from time to time. It's all guaranteed whatever happens. A simple deposit a/c will let you sleep soundly at night.


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## Ethan 1 (13 Dec 2010)

squaw said:


> Hi Ethan 1,
> What is your opinion on moving money to a non Euro deposit a/c so (e.g. Aus Dollar) and if so, when would you move it?


 
Again IMHO this would be a valid option, Eddie Hobbs mentioned this on Newstalk yesterday, I think the bond markets will be quiet until 1st qtr 2011 as their end of year bonus is in the bag for 2010.


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## squaw (13 Dec 2010)

Thanks. Do you know what programme that was on?
Don't fully understand what you mean by your next comment.
Could you expand.


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## Ethan 1 (13 Dec 2010)

squaw said:


> Thanks. Do you know what programme that was on?
> Don't fully understand what you mean by your next comment.
> Could you expand.


 
Link here to the show:

[broken link removed]

The comment about the bond market is also explained on the show.


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