Where to invest 600k

i have recently sold a commercial property and have a lazy $600k laying around. I'm looking for advice on where to invest it for 12 months or so. Or should I buy another property?

 

Hi Titetie,

Where to invest your money depends on your personal goals and objectives for the future and what risk profikle for investing.

 

Oh to have a lazy $600k laying around ;-)

If you're only looking at 12 months, a short term investment (stocks maybe???) could be the way to go. Otherwise, property is always a viable option. Good luck.

 

Structure

Hi Titetie


When considering what asset class you are looking to invest in such as shares, property and cash.

An important aspect of investing is structure where to put the money and does the structure suit my needs.

Superannuation ? Tax-free income stream in retirement, but restriction on the amount of money you can put into superannuation.

Individual ? Flexible on ownership, assets may be taxed at the marginal rates.

Trusts- Trust owns the assets and the flexibility of distribution to beneficiaries.

You will need to work out your goals, objectives and the investment time horizon, to see which structure best suits your financial needs.

Kind Regards

chrisianrenel

 

If you have $600k laying around get some legal advice before thinking about investment advice. Think estate planning and asset protection first.

Similar if it is a commpany or a trust really - seek legal advice.

 

If you have 600k to invest that is all well and good but having a 12 month timeframe is not.

To those suggesting stocks I have no idea why you would say this. 12 months is not a sufficient timeframe.

Seek professional legal/investment advice. You can afford to pay for good advice and it will likely pay for itself many times over.

 

"12 months is not a sufficient time frame".
Why?

 

Because both shares and property are growth assets and are volatile. Historically if you have held either for an extended period of time you have made plenty of money (depending on the specific share/property). This is due to having the timeframe to ride out any negative returns.

There has been many times where in a 12 month period there have been negative returns. What if it is one of those 12 months?

 

Exactly. An advisor may be negligent if they recommended shares for such as short time frame.

 

It depends what do you mean by extended period.
Reasonable good return last 5~7 years (shares) was/is almost non-existent.
Super funds are a good example, because most of fund managers invested in the stock market during negative period.
So, if invested money is not working for investors, they are dealing with a so called lost/missed opportunity, because they are locked in an investment which is doing nothing.
The same money invested in different asset classes would be a better idea.
But there is a very simple solution to this problem.
If market is moving up - buy.
If market is moving down - sell (or sell short).
Passiveness is a recipes for a disaster, proven many times over in the past.

 

And majority of them are negligent (there may be some exceptions).
If advisers knew how to invest they would not waste their time and talk to you.

 

That is a ridiculous statement

 

Not to worry!!
Some people still believe in existence of Santa Claus.
It seems, that you are one of them...

 

Structure

The structure to put the money into may impact the returns and also impact the goals and objectives.

Superannuation is a good retirement vehicle, it has low tax rate on earnings, especially in pension phase and drawing an income is tax free from 60 years. You are able to have your different assets classes inside superannuation as well such share, property and fixed interest.

Putting the money into your name personally, you are able to access the funds at anytime, but taxed at the marginal tax rates.

Your investment strategy is important, but you will need to work out your goals and objectives as well.


Kind regards

Christianrenel

 

Sounds like you lack an basic understanding of the financial planning industry if you thinkn the majority of financial planners act negligently. Also there is more to financial planning than knowing where to invest. I am a financial planner yet don't advise on where to invest at all.

 

You should know that negligence and the luck of knowledge is a problem.

 

Yes there are negligent FPs out there and many lack the equired knowledge, but that doesn't mean there are not good financial planners out there.

 

You'll be lucky if you find one!

 

I am not looking.

 

And...I know why you are not looking