Spare cash

So assuming you had some spare cash flow to the tune of about $1,000/pcm but not enough cash/equity to purchase another property (nor the inclination at this point) what would you do with it.
Also assuming you have no non-productive debt to repay.

Main options I have considered are...
1) Offset account - this would be against investment properties.
2) Cash/bonds
3) Shares - purchasing high yielding blue chip (Banks etc).

There is the likely hood that I may require the cash in the future so don't want it too tied up, but also hate looking at cash yields of +/-5% before tax (though it is safe and easy).

What would you do?
 
Blacky, it depends on the timeline for what you wish to do with the funds in the future.

If you want to access the cash at some point in the next 7 years, I would not put it into shares. Regarding the other choices, an offset account is your best bet.

An Offset Account (to me) is a cash account that earns you interest tax free, at a great rate. This is how I explain it in the plans I write for clients.
 
4) Adopt one of my kids
5) Send me on a Club Med Holiday
6) Buy lotto tickets
7) Offset

I thought you had mortgaged your kids to Heritage.
There is a reason I have spare cash...its cos I dont have children. I sure dont want your second-hand (mortgaged) ones.... :D
 
An Offset Account (to me) is a cash account that earns you interest tax free, at a great rate. This is how I explain it in the plans I write for clients.

But the offset account will reduce my interest bill, therefore increasing my profit, and therefor affecting my tax.

To be fair - I dont actually pay tax atm due to being a non-resident.

I want to find the best, relatively safe, return. Hence why I was looking at Bluechip shares with good dividends.

Thanks for the feedback.

Blacky
 
An Offset Account (to me) is a cash account that earns you interest tax free, at a great rate. This is how I explain it in the plans I write for clients.

Only if it's an offset against non-deductible debt. If it's an offset against deductible debt, the interest you 'save' would have been tax deductible anyway, so the tax free bit doesn't apply.

To put it another way, saving 5% on PPOR interest is 5% after tax. Saving 5% on IP interest is saving 3.5% after tax if your tax rate is 30%.
 
I thought you had mortgaged your kids to Heritage.
There is a reason I have spare cash...its cos I dont have children. I sure dont want your second-hand (mortgaged) ones.... :D

Ah yes Heritage does own at least one of them. I've got an heir, a spare and a princess.
 
Telstra or Westpac shares are returning good yields. Would have been a better buy a few months back though!!

I'd hold out a on getting in the share market atm, a bit over cooked imho.
 
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