Where to put $200K in cash now?

Hi,

I'm a dual US and Australian citizen and I have about $200K in FTDs at Commonwealth Bank. They are all maturing and the new rate is close to 0% so I'm looking for ideas!

I don't mind taking a bit of a risk by investing in a mix of equities and bonds. The challenge is the money is somewhat trapped at CBA (can't get back to Australia to set up new brokerage account). I'm particularly looking to invest long term so nothing with high annual fees.

I do have a low fee Vanguard Austraia account which I dollar cost average into as a balanced growth fund (Vanguard LifeStrategy High Growth Fund). Again unfortunately due to not living in Australia that's the only fund I can invest in now.

First not an advise as definitively not qualified
why not get it money from australia back in the us?
in the last month alone, the AUD has fallen 5% against the USD, and if shxt hits the wall, you are better off putting your aud in usd, or PM;
ETPMAG and PMGOLD are respectively silver and gold exposure available on comsec;
I am personally looking at how to get money out, and it is not easy..to open a US account
If living in the US now (not a given but is it the case?) you are lucky to have access to both US and international market via the NYSE
Much harder from here believe me
hope it helps

qldfrog said:

First not an advise as definitively not qualified
why not get it money from australia back in the us?
in the last month alone, the AUD has fallen 5% against the USD, and if shxt hits the wall, you are better off putting your aud in usd, or PM;
ETPMAG and PMGOLD are respectively silver and gold exposure available on comsec;
I am personally looking at how to get money out, and it is not easy..to open a US account
If living in the US now (not a given but is it the case?) you are lucky to have access to both US and international market via the NYSE
Much harder from here believe me
hope it helps

Click to expand...

Yes, I live in the USA.

I like to keep some money in Australia as I have property there and may need it just in case.

MrCheapo said:

Hi,

I'm a dual US and Australian citizen and I have about $200K in FTDs at Commonwealth Bank. They are all maturing and the new rate is close to 0% so I'm looking for ideas!

I don't mind taking a bit of a risk by investing in a mix of equities and bonds. The challenge is the money is somewhat trapped at CBA (can't get back to Australia to set up new brokerage account). I'm particularly looking to invest long term so nothing with high annual fees.

I do have a low fee Vanguard Austraia account which I dollar cost average into as a balanced growth fund (Vanguard LifeStrategy High Growth Fund). Again unfortunately due to not living in Australia that's the only fund I can invest in now.

Click to expand...

Have you looked at the commonwealth bank perls? They are a similar to bonds, and come with franking credits (if you are able to claim them, the franking credits might not help depending on your tax stays as an American)

Also if you are able to accept some market price risk, maybe vanguards Asx300 index if you want exposure to australia.

MrCheapo said:

Hi,

I'm a dual US and Australian citizen and I have about $200K in FTDs at Commonwealth Bank. They are all maturing and the new rate is close to 0% so I'm looking for ideas!

I don't mind taking a bit of a risk by investing in a mix of equities and bonds. The challenge is the money is somewhat trapped at CBA (can't get back to Australia to set up new brokerage account). I'm particularly looking to invest long term so nothing with high annual fees.

I do have a low fee Vanguard Austraia account which I dollar cost average into as a balanced growth fund (Vanguard LifeStrategy High Growth Fund). Again unfortunately due to not living in Australia that's the only fund I can invest in now.

Click to expand...

What return are you looking for - other than better than 0%? What about a contributory mortgage fund? They pay about 7% fixed rate monthly for lower risk retail funds to say 10% for arguably higher risk wholesale funds (although risk is a subjective term and no investment is risk free). Term is usually 12 months. The security in the retail funds are 1st mortgage usually metropolitan residential with loan to value ratios of 65% or less. While I'm not touting any particular fund (and while now pretty much retired from the game) I am still the Compliance Officer for a couple of Melbourne based funds with a combined $180M FUM. Neither have ever lost $1 of investors money over more than 10 years. I have no financial interest in these Funds but if you care to personal message me or email (info@rna.com.au) I'm happy to explain more about their structure and operation (not many people seem to understand the difference between pooled and contributory funds). As well as the funds I have direct knowledge of I can provide some other names you can check out - but as you would understand I can't give specific advice or recommendation.