where to invest?

[s0805]

Hi there

We've been saving for a while and in a few months we'll have saved enough to cover our existing PPOR debt (i.e. no mortgage)....this was the best strategy i learned here and have given me flexibility to upgrade to new PPOR eventually with this offset money but new PPOR is still few years away

just wish to pick your brains to see where to invest our upcoming savings few options i can think of

1) create new offset acc against investment loan and park savings here ( new offset will costs monthly fees and I will be reducing the deductible loan)

2) invest in shares (have no idea where to start, know nothing about this)

3) be involved in so called short term lending ( recommended by one of my friend who does this from his Fin planner, where they lend money to businesses on higher rate on short term). sounds very risky to me.....not sure if anyone here has heard abt such things from their planners..

Ideally we want something where we can keep adding our savings to this investment....we are looking for our 2nd IP at this stage as well.

any suggestions/advise would be great...

thanks

 

[Peter_Tersteeg]

1) create new offset acc against investment loan and park savings here ( new offset will costs monthly fees and I will be reducing the deductible loan)

2) invest in shares (have no idea where to start, know nothing about this)

3) be involved in so called short term lending ( recommended by one of my friend who does this from his Fin planner, where they lend money to businesses on higher rate on short term). sounds very risky to me.....not sure if anyone here has heard abt such things from their planners.

Offset account: Putting your money in an offset account is about the best place to put store cash if you don't have anything else better to do with that cash. It doesn't have to be a permanent strategy, it can just be a temporary storage facility if you're doing other things.

Shares: If you have no idea where to start, then it might be prudent to spend some time educating yourself before taking the plunge. In the meantime putting money in the offset account is a save and effective place to keep it.

Business loans: Potentially very, very risky. The upside is you could make a good and quick return. The downside is you could loose ALL your money (not just a little). I've access from a borrowers perspective to lenders who facility this type of deal. The people borrowing money under these circumstances aren't exactly people I'd lend money too.

 

[s0805]

Offset account: Putting your money in an offset account is about the best place to put store cash if you don't have anything else better to do with that cash. It doesn't have to be a permanent strategy, it can just be a temporary storage facility if you're doing other things.

Thanks Pete. Only thing is with the offset here I am offsetting my deductible loan....
however i see your point until i understand share, I can park my money in offsetting my investment loans.....

thanks