Best place to park $80,000?

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You also run the risk of missing the best days in the market

Timing-the-market-1024x696.png
 
ash_1050 said:
I've never heard of Questrade, and they don't appear to be available in Australia.

Why pay $260 in fees when you can pay $10 in fees and buy it all at once? Staggering your buying has been shown to be less effective than lump sum investing during multiple examples why would you voluntarily pay $250 more fees which could otherwise be invested and receive a lower return when doing so?
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Fair enough , I wasn’t aware questrade wasn’t available in Australia , that’s a shame, it’s very popular in North America because of its cost and ease of use.

I agree that it’s about time in the market, though in times of extreme uncertainty and for those who are not entirely comfortable with equity markets , dripping in and potentially stopping is a viable option.

We’re all aware of the golden rules , time in the market and professional stock pickers don’t beat the market and yet many of us who are comfortable with equity break both.


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I also don’t think you can purely look at it in terms of investment costs. If you do, then your clearly sometime who can tolerate a lot of risk and who’s best move is going all in on day 1 in low cost efts or the one companies shares.

For the vast majority, there is more to the story than $250 on 80k investment, which is really a tiny amount considering the potential returns from all options. It’s about risk tolerance , access to funds and carrying costs.


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Gigantic said:
You also run the risk of missing the best days in the market

Timing-the-market-1024x696.png
Click to expand...

Agreed, though I have had some success in in buying on the dip under the assumption long term the market goes up. Which is different to what I’m suggesting with parking 80k for sometime new to equities.

I bought during the covid dip, I’m doing it again , time will tell if I got it right.


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Macca180 said:
updates.
Click to expand...
With interest rates a little better on savings accounts/term deposits, if I needed a short, defined term of no risk, e.g. I'm going on a holiday in 6 months and want to take my $80k + interest overseas I would just do a 6 month term deposit or 6 months high interest savings account, whichever was better at the time of applying.

If it was longer term, and I had more risk appetitie e.g. I was looking to actually invest and happy to ride the ups and downs of the market, I would probably split my portfolio.

If you can service a property via your income and can get a loan, then properly is proven to be an excellent investment, but it's not simple nor quick to get in. Nor is it liquid, and this is a 10-15 year play.
These funds could go towards deposit + purchasing costs.

Bottom line is it all depends on length and risk appetite, so you could adjust the below to suit.
Otherwise a random $80k portfolio could look like $40k in shares, $25k savings account, $10k Gold, $5k crypto

-I'd put some into shares (ETFs generally) ,a lot more liquid, but doesn't work if you need to pull the money short term and can't afford to lose any as you legitimately could risk losing 5% if you didn't have the time to ride the market long term.
-A portion into cash/savings (safe bet and guaranteed you're not going to lose the principle amount, probably get about +5% for your trouble)
-A small portion into Crypto, (obviously the biggest risk, but highest return potential)
-A small portion into Gold
 
juss said:
With interest rates a little better on savings accounts/term deposits, if I needed a short, defined term of no risk, e.g. I'm going on a holiday in 6 months and want to take my $80k + interest overseas I would just do a 6 month term deposit or 6 months high interest savings account, whichever was better at the time of applying.

If it was longer term, and I had more risk appetitie e.g. I was looking to actually invest and happy to ride the ups and downs of the market, I would probably split my portfolio.

If you can service a property via your income and can get a loan, then properly is proven to be an excellent investment, but it's not simple nor quick to get in. Nor is it liquid, and this is a 10-15 year play.
These funds could go towards deposit + purchasing costs.

Bottom line is it all depends on length and risk appetite, so you could adjust the below to suit.
Otherwise a random $80k portfolio could look like $40k in shares, $25k savings account, $10k Gold, $5k crypto

-I'd put some into shares (ETFs generally) ,a lot more liquid, but doesn't work if you need to pull the money short term and can't afford to lose any as you legitimately could risk losing 5% if you didn't have the time to ride the market long term.
-A portion into cash/savings (safe bet and guaranteed you're not going to lose the principle amount, probably get about +5% for your trouble)
-A small portion into Crypto, (obviously the biggest risk, but highest return potential)
-A small portion into Gold
Click to expand...
Since the time of this post, the ASX, Crypto and Gold have all had a strong run. It's obviously peaks and troughs and time in the market > timing the market, but we might be at a bit of a peak or plateu in this run. Think most of the growth of this cycle has occurred.

Not financial advice lol just one speculators observation.
 
juss said:
Since the time of this post, the ASX, Crypto and Gold have all had a strong run. It's obviously peaks and troughs and time in the market > timing the market, but we might be at a bit of a peak or plateu in this run. Think most of the growth of this cycle has occurred.

Not financial advice lol just one speculators observation.
Click to expand...
Well the answer is definitely Bitcoin with hindsight. Would be 1400% up if held from date of OP to now - $80k into $1.1 mill
 

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kaiserchief13 said:
Well the answer is definitely Bitcoin with hindsight. Would be 1400% up if held from date of OP to now - $80k into $1.1 mill
Click to expand...

You'd have to have had nerves of steel and held that entire time, which the vast majority of people don't have (myself included). Anecdotally, the Bitcoin fans in my life certainly haven't seen a 1,400% increase in their wealth, so even the most ardent fans have waivered.

Bitcoin has certainly matured and the investment case for most people to potentially have a portion of their assets in bitcoin has some merit.
 

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Best place to park $80,000?

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