Buy assets or lose your money
- Thread starter BoatBoy
- Start date
Especially so for those self-funded retirees who are relying on fixed interest to live on.
wealth confiscation.
receive less interest than inflation - there's no way to keep up.
those CF+ deals are looking better and better every day.
receive less interest than inflation - there's no way to keep up.
those CF+ deals are looking better and better every day.
Especially so for those self-funded retirees who are relying on fixed interest to live on.
Yep, them too.
Definitely a tough one for them.
Just wondering if this will be the push that savers need to look at other asset classes.
Dave
For the last 12-18 months cash has ben king. Only carefully selected assets have bettered it, but with those interest rates many will decide it's time to take the cash and spend it.
This is the only reason I haven't sold my IPs. If I were to do so I would have to find somewhere else to invest. I'm content in the share market and could show you dozens of charts of stocks which have had very good half years but many here aren't. FWIW I'm starting a process of accumulation, buying on dips, but i wouldn't like to have to commit a lump at a time that isn't my choosing ie When a property settles.
This is the only reason I haven't sold my IPs. If I were to do so I would have to find somewhere else to invest. I'm content in the share market and could show you dozens of charts of stocks which have had very good half years but many here aren't. FWIW I'm starting a process of accumulation, buying on dips, but i wouldn't like to have to commit a lump at a time that isn't my choosing ie When a property settles.
Based on this type of thing Dave, I'm having some very interesting chats with alot of cash-up elderly folks, whose unshakeable faith in simple deposits with the big Banks is being shaken up.
Banks give them 2%. Banks charge me 6%. There's alot of room to manouvre. The Bank's margin is very fat.
Sitting down with the elderly folk and splitting the difference, so I pay them 4% and they receive 4% off me might work just tickety-boo. They have been so beaten up by the Banks, that it won't take much to encourage them to talk with me.
Why do we need the Banks ??
Banks give them 2%. Banks charge me 6%. There's alot of room to manouvre. The Bank's margin is very fat.
Sitting down with the elderly folk and splitting the difference, so I pay them 4% and they receive 4% off me might work just tickety-boo. They have been so beaten up by the Banks, that it won't take much to encourage them to talk with me.
Why do we need the Banks ??
As I have been said previously there are several options for savers. One of the first assets you would look to buy after housing is gold (I think gold is still cheap compare to house price), then you can buy corporate bonds that have a better yield then mortgages and often is even safer, for expample a corporate bond of BHP in US$ have a yield of around 5.5% for 5 year term and 6.5% for 10 year term (a 10 year term mortgage in US has less then 5% yield). Then you also have the option to buy shares and definetly shares are cheaper then property in Australia. You also have the option to buy state bonds or gov bonds but still not a very good yield considering the inflation in Australia.Then you have my favourite option to invest or put the money in a deposit or gov-corporate bonds that is not in AU$.
In any case UK is in a worse situation then Australia (I used to say was NZ but it is not anymore). So if UK destabilise and inflation and currency get out of control I would run out of the AU$ and AU banks deposit too.
In any case UK is in a worse situation then Australia (I used to say was NZ but it is not anymore). So if UK destabilise and inflation and currency get out of control I would run out of the AU$ and AU banks deposit too.
Hi, sure does. I just did that last month. borrowed $170000 @ 9.5%
Using half of it to zerorise tax. Spent $50000 to save $12000.
Now scratching my head what to do with the excess $120000.
KY
Using half of it to zerorise tax. Spent $50000 to save $12000.
Now scratching my head what to do with the excess $120000.
KY
Yeah, but the headline is likely to sell more papers than "Bank rolls headline rates on term deposits to new terms, as they do every couple of weeks".
Gold might be in a bubble already? Are you frickin kidding me Shadow? $200 above a 30 year old high and it's looking a little toppy to you is it?
Define stored safely...a safety deposit box at a bank is not very expensive. Alternatively there are plenty of paper options.
Gold doesn't offer much of a yield though. Pretty hard to store significant quantities of it safely too.
And the gold price might be in a bubble already...
Sorry Shadow but I don't like that chart (it is not casual that start in 1975), if you look at the inflation adjusted chart a bubble of gold was in 1980.
Here is a few charts you can add in your folder...
I haven't got those for the AU market or gold compare to property.
Anyhow, gold is attractive as you don't pay capital gain on it.
disclaimer:
I don't have phisical gold holding investments
This really gets up my nose!
I have been a contributing member here for four or five years (someone will check so I don't need to. LOL) and for most of that time the path to wealth and early retirement was defined as using OPM via neg gearing.
Members here have confessed to being $1k/m neg geared but suddenly everybody has dollars coming out of their ears. Give me a break! You can store an awful lot of gold (allocated) at Perth Mint for that sort of money.
I wish you guys wouldn't keep moving the goal-posts.
I disagree. But even if you are correct it is the only insurance policy i know of that doesn't decrease to zero a year after you buy it. In fact, if you never make a claim on it you can give it to the grand kids.
From the bottom of my heart I believe every careful investor should have at least a month's wages in readily accessible, easily identified bullion coin. As I said, if you don't need it, it's still there later.
