I have inherited 100k approx. Need some help to invest. Should I invest in shares, properties? Spoke to a financial planner. Has said we can dbl our money in 7 years, by investing in managed funds. Can anyone suggest something better. HELP!!!!
The financial planner is itching to invest it for you to get his 4% comission and annual fee for managing it.
If you feel managed funds are the way ahead then do your own research and buy them through a discount broker. You will then get $100K worth of funds instead of $96K worth.
http://www.morningstar.com.au is a place to start.
Shares (either direct or thru a managed fund or two) and property are both realistic investments.
You need to do some learning before spending the money. Spend a few months reading books and websites and talking to other investors.
In the meantime check out http://www.ingdirect.com.au for a nice place to store the cash.
If you have a homeloan then consider putting it there and redrawing money to invest. Will make part of your homeloan tax deductible. Best to speak to an accountant first.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I agree with Simon completely.
My managed fund which my parents started contributing in 1990, has not increased at all. For first 10 years it was less than what they contributed because the financial planner was taking his big chunk of commission. So be careful of managed funds. Check all the fees involved.
First, reduce your non deductible debt.
Then learn as much about investing & creating wealth.
If you don’t have any debt, then put it into investing account that earn you over 5.5% pa.
Don’t expect people are going to do all the leg work for you.
Hey Dream
At first I thought you were want to help spending your inheritance![biggrin]
The other comments are very valid, with that kind of money you should be able to do better than 5.40% (I think) with ING. Most FI’s will negotiate a better interest rate with you for sums over $100k so if you can earn an extra .2 or .3% why not (on a $100k it can make all the differance).
If you do have a mortgage for your ppor and the FA you saw didn’t advise paying it off and redrawing (as Simon suggested) then find another advisor because they are not working in your best interest.
If you want to investigate yourself then http://www.investsmart.com.au is a good site and if you go thru them there is no entry fee / commission.
Other than that all I can say is think about it and don’t waste the money that has been left for you, I’m sure that was not the intention of the person who left it. I work for an FI and have seen many times when a lump sum comes into an account and slowly gets dwindled away with everyday leaving.
Good Luck
MikeHi Dream,
Lucky you! All comments so far very valid however I would recommend you spread your risk across more than one class of asset. $100K will get you a good foothold in shares, a managed fund and property. Good luck!
Flatout
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