Life ASSURANCE or Shares?? What is the best way to invest around $2,500 in Aus
Life ASSURANCE or Shares?? What is the best way to invest around $2,500 in Aus
Need more info about yourself, age, investment timeframe, goals etc
But just as a general thought, if you can save $100 a month and put that away then managed funds might be suitable
Obviously you need to weigh up risks of managed funds against what your trying to achieve
IG,Originally Posted by Islandgirl
With the markets the way they are now I suppose the safest is an online savings ac like www.ingdirect.com (5.40% without fees or charges or catches- need a local bank ac to open it). Personally I think you'll have a better chance picking a bluechip to go up than a fund manager who'll be worth your money.
Depends on your goals and other details as bvb mentions. This is not financial advice just a guess on my part.
My posts are not recommendations (even when I rave about something). Always rely on your own research & judgement.
BankWest are doing 6% still I think (5.25% + 0.75% bonus interest)
Yes they are - 6%.
They are raking it in - deposits have exceeded targets by a country mile.
IG - As I read - my instant thought was Ing Direct at 5.4% - then saw Rich Kid had already suggested that.
Don't know Bank West - don't think they're in Qld - haven't seen any ads.
Definitely not shares with that amount of money at the moment - wait till the market turns more positive again.
I'd suggest an online account like ING right now too. That's where most of my money is.
BankWest has the best rate (that I've seen) for this type of account, with 6% for the first 12 months. They only accept personal accounts though (ie. not company or trust). That's where most of my personal cash is.
As well as no fees and no minimum deposit, money's at call. You can transfer funds back to your linked bank account at any time. It may take a couple of business days to get there though.
Banking is BORING...., i'd still go shares anyday.
Whats the most Islandgirl will make out of $2,500 @ 6% = $150 p/a
Try a 1 or 2 cent stock and hope for the best. You may be able to make a larger profit than $150 - trading fees of course.
Banks pay you 6% but they use this money to invest, hence the reason why shares have more rewards, but greater risks too.
You only live once....take a risk!
A lousy $150 p/a aint going to get you far in life.
I shoved $4000 on PNO and turned that into $10,500 in 1 day, it is possible!
$4k into $10.5k ???? woah! into any suggestions on what to buy then? :p
Hope for the best???Originally Posted by krisbarry
This kind of advice is dangerous for Island Girl, because we do not know whether she can afford to lose any or all of the $2,500.
Island Girl, I think there is no one in this forum who has a licence to provide financial advice.
Bottom line. You need to decide because it is your money and if you lose it, no one in this forum will give you $2,500. You also need to think about your time horizon. Are you investing short term (less than 1 year) or longer term?
If you know nothing about shares and the risks involved, particularly now, when a bear market might be only days or weeks away (on one knows for sure), play it safe and try to learn more before you venture and mix it with "sharks" (oops I meant hedge funds).
I find volume a good indicator of when the share is going to move. I made good returns with penny stocks but you have to wait for it. You have to pick ones who's share price's starting to climb, and you're only in for a minimum of one day, maximum three.
Ahhh not good to give advice on boards such as this, I will just get shot down in flames. All I will say about the trade with PNO, it was my second week trading, self taught. Just jumped on the stock after an annoucement and hoped for the best and what a day that was!Originally Posted by dan_the_man
My only advice I would give is that if your life isn't going anywhere, just take a few more risks, one of them will pay off, eventually!
Of course its dangerous, hence the rewards can be far greater than 6%!Originally Posted by Investor
Geeez, if we all had the same attitude and stuck it in a savings account, then we would all be broke.
The ones who have made the greatest impact have risked the most too.
I started out with $2,500 in an ING saving account too,
took a few risks and transformed my account balance into something spectacular with the share market.
i like krisbarrys attitude.....when i went to this seminar i found an interesting quote ......why invest in the long term(years n years), how do u know if ur going to be alive still?..... " u want todays car, TOMORO...not in 10 years time !"
but for Island girl's case....best if she's educated with the stockmarket first before jumping in....cant just throw your money on anything...
best of luck
Wow PNO jumped from just over 1c to 12c in one or two days last year? cripes!
Krisbarry and that was your first trade straight off the bat?
How do you do these days?
Hi IG, with that amount of money and if your interested in trading why not look at opening a CFD account a good way to make money without huge amonts of money!!!!!!!!!!!!!!!!!
Originally Posted by Investor
IG,I agree. It's your money, only ever invest if you're prepared to risk a loss. Having said that, small steps are best taken first. Chart a range of stocks and plot them against what you what have paid for them if you bought them. The minimum initial deposit in an ETrade A/C is $1000. They create a cash A/C that is earning around 3% interest whilst your money is parked there awaiting the purchase of shares. Your time frame and overall strategy is crucial. If you haven't developed a plan or know little about shares, then read and research. Use this site as a good starting point. If you go into the market, are going to go in as an investor or a trader? It's an important question and the difference can be very subtle. The minimum purchase on the ASX is $500 (+ Brokerage & GST). $2500 could give you about 4 positions if you invested in bundles of $500. It won't give huge returns like others have mentioned but it allows you to dfiversify the portfolio and thus minmize the risk of losing everything. At the end of the day, it's your money and therefore your decision. Do some research and then decide.
Islandgirl, is this money you are willing and able to risk losing in the pursuit of profit OR is it money that you can't afford to lose?
This is a critical question. Can you safely risk that money without adverse personal consequences?
If you can't afford the risk then a bank account like ING is for you.
If you can afford the risk then shares or even forex (currency trading) is worth looking at.
It is my VERY strong suggestion that you do lots of research before buying any shares. Understang both the bull (market will go up) and bear (market will go down) arguments. After such a strong rise as we have had over the past couple of years it would be dangerous to simply assume that the market will go up. It could go up, or down.
If it were me, I would put the money in ING or Bank West and, assuming that you are going to invest this money in shares etc, do plenty of research. THEN open an account with a broker and make your first purchases.
But if you can't afford the risk of loss, stay out of the share market. There is never any guarantee that any individual share trade will profit and with only $2500 it is difficult to achieve diversification across numerous shares.
You could look at simply buying the index (stock code STW is one such index tracker or you could do this via CFD's) but you would need to form an opinion on whether the market is heading up OR DOWN before doing this. That means lots of economic research (fundamentals) or gaining an understanding of technical analysis.
In short, research first, then invest. Keep reading this forum, especially threads on the market as a whole (XAO and XJO plus the overseas markets like the Dow) and subjects like fundamentals and technical analysis. Threads on individual stocks are also useful but I would suggest that you gain an understanding of the basics before worrying about individual stocks.
I'm not a financial advisor so this is only my opinion and not qualified financial advice.