what would you do with 200k cash lotto winning?

[atti]

Funny question? I think I am In that boat
I myself 30 married 0 kids
I have 2 ip 1 payed off worth 350k subdivision potential but I have tennat in there paying 320pw he has been there 4 years and probaly stay there another 4 house is ok.
Other ip 300k debt I live in it but only in granny flat rented house out 300 a week.
Its worth 400k and only 2 years old.

Job wise I am comfortable living on part time 26k a years. What to do with lcuky prize if you were me lol

 

[Ace in the Hole]

Just put it in offset account of IP with 300k debt.
Once you find out what you want to do, you can take it if required.

 

[Terry_w]

IMmediately gift it to a discretionary trust. Then have the trust invest it

 

[Jake D]

IMmediately gift it to a discretionary trust. Then have the trust invest it

Remind me to call Terry if I ever have any real money to invest.

 

[The Fence]

Immediately transfer it to me and I will invest it for you, no worries, she'll be right mate...!

 

[Richard Feynman]

Put it on red.

 

[lowiq]

Put it on red.

No, the black

 

[Africandaisy]

Just put it in offset account of IP with 300k debt.
Once you find out what you want to do, you can take it if required.

I reckon this is good advice. Some options to consider when you are ready are:

1. Use some for the deposit on another IP (depends if your borrowing capacity is already maxed out). Diversify by buying in another state.

2. Diversify by investing in something other than property. An index fund is a simple low cost way to get exposure to the share market.

3. Put some in your super fund. I know you are young and probably not thinking about super yet but a little deposit now will become huge after 35 years of compound interest.

4. Use some to improve your quality of life in a meaningful way. For example, to do some travel, or study something you are interested in, or to get fit & healthy, or to fund time out of the workforce to raise kids (if you want them).

5. Use some to make sure you have all the basic safety nets in place. For example: a really safe car, 6 months wages in offset, appropriate insurance policies, Wills & Powers of Attorney etc.

6. Allow yourself a small amount to splurge on a special treat. After all this is a windfall

 

[ok180]

3. Put some in your super fund. I know you are young and probably not thinking about super yet but a little deposit now will become huge after 35 years of compound interest.

Awful advice. Why would you choose to lock money away and then not be able to do anything with it for at least 30 years. Super is good for Joe average pack a day smoker, anyone with half a brain should be doing their own investing. Definitely would not be choosing to lock away money like that given the choice.

 

[sanj]

Awful advice. Why would you choose to lock money away and then not be able to do anything with it for at least 30 years. Super is good for Joe average pack a day smoker, anyone with half a brain should be doing their own investing. Definitely would not be choosing to lock away money like that given the choice.

I ddon't think it is so awful. An extra 10k now could make a pretty big difference over 30 years. At very least he should be taking advantage of co contribution. I take my smsf somewhat seriously despite only being 31

 

[esh]

I ddon't think it is so awful. An extra 10k now could make a pretty big difference over 30 years. At very least he should be taking advantage of co contribution. I take my smsf somewhat seriously despite only being 31

How bout in Super and then purchase IP through it? But I dont really know how it works. if they are able to sell it if ever need be

 

[Ed Barton]

I'd spend half on hookers and coke. The rest I'd waste.

 

[Terry_w]

I'd spend half on hookers and coke. The rest I'd waste.

You sound like Mr Chow (from Hangover)

 

[atti]

Just put it in offset account of IP with 300k debt.
Once you find out what you want to do, you can take it if required.

thats what i was thinking, but market seems abit soft a good unit in good location seems to be logical choice. can almost replace my income and quit my job.

i am not much of a gambler so no black or red just in my pocket is better.

trust seems like a good idea i gave my tax accountant a call he says unless i have million bucks and large family to distribute its no point trust can be expensive to maintain with small (lol) amount of cash / income. thats what he said my personal income isnt 6 figures or close to it so no point to start a trust.

his opinion is also offset or pay off all loans asap then start another ip/place to live.

anyone seeing another economic slow down in next 1-5 years ? seems like banks are pretty sure on advertising fix rates 3 years @ 4.72 % etc loans.

 

[Terry_w]

trust seems like a good idea i gave my tax accountant a call he says unless i have million bucks and large family to distribute its no point trust can be expensive to maintain with small (lol) amount of cash / income. thats what he said my personal income isnt 6 figures or close to it so no point to start a trust.

his opinion is also offset or pay off all loans asap then start another ip/place to live.

I think you should get some legal advice on trusts.

What if you gifted it to a trust and then borrowed it back interest free and parked the money in the offset account.

Perhaps the trust could also take some security for its loan....

 

[atti]

I think you should get some legal advice on trusts.

What if you gifted it to a trust and then borrowed it back interest free and parked the money in the offset account.

Perhaps the trust could also take some security for its loan....

have some1 specialise like u in adelaide i can see?

 

[pinkboy]

have some1 specialise like u in adelaide i can see?

Why don't you pick up the phone or email Terry?

Face to face with this type of stuff is sooooo 1990's!

pinkboy

 

[ok180]

I ddon't think it is so awful. An extra 10k now could make a pretty big difference over 30 years. At very least he should be taking advantage of co contribution. I take my smsf somewhat seriously despite only being 31

Super can be a dangerous waste of time when your young. Im the same age as you sanj, I enjoy looking at my super balance crawl higher and higher but I wouldnt lock away anything more than 9% in it because politicians cant keep their hands off the scheme, they have already moved the cashout age to 65, i bet by the time we reach that age they will move it higher again or make it so you can only derive an income stream from it no more lump sums.

By saying you think investing in super is a good idea your basically trusting your money with a politician...

 

[Scott No Mates]

I won't say super is a waste - unfortunately your contribution is capped at $25kpa as you are younger than 50. Take advantage of being young as time is to your advantage.

Go down the line of a SMSF if you have an adequate balance or just keep building in a well-performing low-fee fund eg CBUS (contribute the $25k out of the offset a/c before 30 June and some more again on 1 July - but watch the cap).

 

[John_]

Straight to Nick Radge and subscribe follow his trades with 200k