Let’s say I have (pick a random number) $17,000. I don’t, but just for plot convenience, let’s say I do. I have the option of placing that money into an account and in 2 and a half years, have $19,000. That’s approximately 12% more than when I started (I think?).

Would that be classified as a good investment? Or is $2,000 over 2.5 years not considered a whole lot?

Sorry if it’s a dumb question but it’s 4:30pm Friday and not even caffeine is helping my mind to move.

JTQ said:

Let’s say I have (pick a random number) $17,000. I don’t, but just for plot convenience, let’s say I do. I have the option of placing that money into an account and in 2 and a half years, have $19,000. That’s approximately 12% more than when I started (I think?).

Would that be classified as a good investment? Or is $2,000 over 2.5 years not considered a whole lot?

Sorry if it’s a dumb question but it’s 4:30pm Friday and not even caffeine is helping my mind to move.

Depends what you want.

If you want to grow your money through accumulating interest – no, not really.
If you want there to be a good chance your money will still be there in two years time with perhaps a little extra on top – yes.

It’s an example of safe-keeping rather than investment for profit.

party_pants said:

Depends what you want.

If you want to grow your money through accumulating interest – no, not really.
If you want there to be a good chance your money will still be there in two years time with perhaps a little extra on top – yes.

Ok thanks :)

If I were to be looking at accumulating interest, what sort of bank balance might one like to see (realistically) after 2.5 years?

JTQ said:

party_pants said:

Depends what you want.

If you want to grow your money through accumulating interest – no, not really.
If you want there to be a good chance your money will still be there in two years time with perhaps a little extra on top – yes.

Ok thanks :)

If I were to be looking at accumulating interest, what sort of bank balance might one like to see (realistically) after 2.5 years?

https://www.moneysmart.gov.au/tools-and-resources/calculators-and-tools/compound-interest-calculator

JTQ said:

party_pants said:

Depends what you want.

If you want to grow your money through accumulating interest – no, not really.
If you want there to be a good chance your money will still be there in two years time with perhaps a little extra on top – yes.

Ok thanks :)

If I were to be looking at accumulating interest, what sort of bank balance might one like to see (realistically) after 2.5 years?

Sorry, I’ve not really kept up with interest rates in the last few years since I quit work at the bank. Not sure what is a good rate these days.

JTQ said:

party_pants said:

Depends what you want.

If you want to grow your money through accumulating interest – no, not really.
If you want there to be a good chance your money will still be there in two years time with perhaps a little extra on top – yes.

Ok thanks :)

If I were to be looking at accumulating interest, what sort of bank balance might one like to see (realistically) after 2.5 years?

Well the first step would not to look at a bank. The banks can keep your money safe and give you a tiny amount over inflation. But if you want to make money out of your capital then you need to look at high risk/higher returns investments like stock market/housing ect. But there is alway a risk you will lose some or all of your money.

party_pants said:

JTQ said:

party_pants said:

Depends what you want.

If you want to grow your money through accumulating interest – no, not really.
If you want there to be a good chance your money will still be there in two years time with perhaps a little extra on top – yes.

Ok thanks :)

If I were to be looking at accumulating interest, what sort of bank balance might one like to see (realistically) after 2.5 years?

Sorry, I’ve not really kept up with interest rates in the last few years since I quit work at the bank. Not sure what is a good rate these days.

Upto 4% for some accounts. A tiny bit more for term deposits. 4.2-4.3%

PWM’s Tip #289

Never invest in someone else’s dream.

Stealth said:

Well the first step would not to look at a bank. The banks can keep your money safe and give you a tiny amount over inflation. But if you want to make money out of your capital then you need to look at high risk/higher returns investments like stock market/housing ect. But there is alway a risk you will lose some or all of your money.

I’m looking at a cash investment, not with a bank, and guaranteed return of 12% in 2.5 years. Interest of 12% is based on principal, not a per annum rate. So about $19,000-ish return. There’s the further option of adding an extra 3.25% p.a. rate on top of that.

Peak Warming Man said:

PWM’s Tip #289

Never invest in someone else’s dream.

:)

It’d be someone else investing in my concept, but guaranteed (little-to-no-risk) return. I guess just wondering if $2,000 extra in the account after 2.5 years is worthwhile or not.

Might just come down to the individual, I guess.

JTQ said:

Stealth said:

Well the first step would not to look at a bank. The banks can keep your money safe and give you a tiny amount over inflation. But if you want to make money out of your capital then you need to look at high risk/higher returns investments like stock market/housing ect. But there is alway a risk you will lose some or all of your money.

I’m looking at a cash investment, not with a bank, and guaranteed return of 12% in 2.5 years. Interest of 12% is based on principal, not a per annum rate. So about $19,000-ish return. There’s the further option of adding an extra 3.25% p.a. rate on top of that.

The base rate is about the same as a bank term deposit, so if the cash investment is not secured then you are better in a bank. The additional interest would make it worthwhile, dependant on the risk involved.

The Money Market will give you the best interest, especially the smaller banks, plus it is very secure. However you would need over $20,000 for them to be interested. If you check with the banks head office white pages, there should be a number listed under Money Market you can ring. I found the Bank of SA or Bankwest offered the best rates.

Cash investment is quite an ordinary wealth investment strategy due to taxation liabilities. You pay capital gains tax on 100% of all cash investment gains. There is no 12 month / 50% reduction relief for cash as there is with other strategies.

Investing in cash trading shares might be a better investment over 2 years as you get the reduction on the capital gain when you realise it based on your time frame.

Parking cash in an account be it a general savings type or term deposit is generally not an investment but gives the owner in increase on par with CPI increase and the all important liquidity. One can basically call the bank one day and have the funds available the next. Liquidity is the benefit of bank deposits.

This is general info only. DYOR

The First Council of Nicaea discussed prawns at length and decided in the encyclical prolog to the Creed of Nicaea and set forth in Cannon Law that prawns would be exempt from Seafood Sanctions and could be eaten on every day including the Sabbath.
So prawns are OK, Pete.

JTQ said:

Let’s say I have (pick a random number) $17,000. I don’t, but just for plot convenience, let’s say I do. I have the option of placing that money into an account and in 2 and a half years, have $19,000. That’s approximately 12% more than when I started (I think?).

Would that be classified as a good investment? Or is $2,000 over 2.5 years not considered a whole lot?

Sorry if it’s a dumb question but it’s 4:30pm Friday and not even caffeine is helping my mind to move.

given the interests recently it sounds ok

if you don’t want to use the money and you just want to park it somewhere then fine

we are talking bigger banks here right?

Peak Warming Man said:

PWM’s Tip #Chapter 2 verse 89

Never invest in someone else’s dream.

Put it all in bitcoins, they’re a can’t-lose proposition.

Kingy can give you all the details.

Here is a link showing the current retail bank interest rate (currently 2.5%), but you would get more on the Money Market, depending on the current bank’s requirement for cash. However if you can get 12% over two years, it sounds like a very good deal.

Neophyte said:

Put it all in bitcoins, they’re a can’t-lose proposition.

Kingy can give you all the details.

Yeah… but no…

In late 2011, the exchange rate of bitcoin crashed from over $30 in June to below $2 in October.

On 10 April 2013, the bitcoin exchange rate dropped from $266 to $76

PermeateFree said:

Here is a link showing the current retail bank interest rate (currently 2.5%), but you would get more on the Money Market, depending on the current bank’s requirement for cash. However if you can get 12% over two years, it sounds like a very good deal.

12% over 2.5yrs is about the same as the banks.

PermeateFree said:

Here is a link showing the current retail bank interest rate (currently 2.5%), but you would get more on the Money Market, depending on the current bank’s requirement for cash. However if you can get 12% over two years, it sounds like a very good deal.

http://www.tradingeconomics.com/australia/interest-rate

Neophyte said:

Put it all in bitcoins, they’re a can’t-lose proposition.

Kingy can give you all the details.

kingy is a bit coin billionaire king pin

JTQ, what you are describing is not investing but gambling. I commend you to learning to tell the difference.

I invested heavily into windchimes and children’s laughter

made me the man I am today

wookiemeister said:

I invested heavily into windchimes and children’s laughter

*Nods *

I tried to go gambling at the Pokies, but they called it Gaming. I tried to go gambling on the stock market, but they called it ‘investing’. In desperation, I went gambling at a horse racing track, but they called it ‘Betting’.

What’s a bloke with a gambling problem to do?

Rule 303 said:

wookiemeister said:

I invested heavily into windchimes and children’s laughter

*Nods *

I tried to go gambling at the Pokies, but they called it Gaming. I tried to go gambling on the stock market, but they called it ‘investing’. In desperation, I went gambling at a horse racing track, but they called it ‘Betting’.

What’s a bloke with a gambling problem to do?

Senior management?

Rule 303 said:

wookiemeister said:

I invested heavily into windchimes and children’s laughter

*Nods *

I tried to go gambling at the Pokies, but they called it Gaming. I tried to go gambling on the stock market, but they called it ‘investing’. In desperation, I went gambling at a horse racing track, but they called it ‘Betting’.

What’s a bloke with a gambling problem to do?

buy shares

wookiemeister said:

Rule 303 said:

wookiemeister said:

I invested heavily into windchimes and children’s laughter

*Nods *

I tried to go gambling at the Pokies, but they called it Gaming. I tried to go gambling on the stock market, but they called it ‘investing’. In desperation, I went gambling at a horse racing track, but they called it ‘Betting’.

What’s a bloke with a gambling problem to do?

buy shares

its tax deductible

wookiemeister said:

buy shares

I thought of going into small business, but that seemed to be mostly a matter of holding my erect penis while a bank manager moved my arm.

;-/

to be honest 17,000 or other trifling amounts aren’t worth worrying over

if you’ve got a spare few hundred thousand laying around then get serious and do some research

a good accountant will often know how to evade tax.

avoiding tax will have better returns than trying to make money via a psychology of making money

Rule 303 said:

wookiemeister said:

buy shares

I thought of going into small business, but that seemed to be mostly a matter of holding my erect penis while a bank manager moved my arm.

;-/

20 years in the Army turned out to be a pretty good investment. Indexed income from 37 a portion of which is transferrable to a spouse till the end of their natural and guaranteed until the collapse of society.

Rule 303 said:

wookiemeister said:

buy shares

I thought of going into small business, but that seemed to be mostly a matter of holding my erect penis while a bank manager moved my arm.

;-/

if you are starting your own business its risky – depending on what you do you’ll have people trying to rip you off left , right and centre

you’d be better off making your wife self employed and reap the tax benefits that come with self employment.

some companies might have a turnover of 2.5 million but only pay 50,000 tax once they’ve followed every trick in the book.

rich people will often make their wife and children a tax haven. trusts are opened in the childrens name, large businesses can be put into childrens names – look out for it on receipts – they will often say the business is a trust.

Skunkworks said:

Rule 303 said:

wookiemeister said:

buy shares

I thought of going into small business, but that seemed to be mostly a matter of holding my erect penis while a bank manager moved my arm.

;-/

20 years in the Army turned out to be a pretty good investment. Indexed income from 37 a portion of which is transferrable to a spouse till the end of their natural and guaranteed until the collapse of society.

I’ve met one character who worked in the power authority for ten years (pension), x years in the navy (pension, worked as a screw (pension and finally went back into the power authority.

wookiemeister said:

I’ve met one character who worked in the power authority for ten years (pension), x years in the navy (pension, worked as a screw (pension and finally went back into the power authority.

Yup, take another job you still get it.

my own strategy is to simply pay off my mortgage

I’ve got about 6 years left on mine.

once the mortgage is paid off the only other leech is the government at every level.

way too many people end up paying off their mortgage when their around 60, then they’re boned.

a house is only one way to reduce your tax burden

any measure that takes money away from you is a tax in one guise or another.

What’s a bloke with a gambling problem to do?
———————————————————-

Buy a new car and drive it off the lot.

That should give you the fix of losing money for no reason.

Probably only lasts till the next model comes out.

Mr Ironic said:

What’s a bloke with a gambling problem to do?
———————————————————-

Buy a new car and drive it off the lot.

That should give you the fix of losing money for no reason.

Probably only lasts till the next model comes out.

Not really gambling though. Most gamblers think they are going to make money on their next attempt. Not many people would drive off a lot in a new car with the hope of making money.

whilst at the power authority I was working a few feet from Sydney casino

I walked in over lunch time and watched some chinese chick blow 300-500 dollars in each game of roulette (lost every time of course)

she would lose a few thousand and then step back, watch and then gamble again

she must have blown 5000 in the short time I was watching

rich people will often make their wife and children a tax haven.
———————————————————
All so works a treat for family unity. Just ask Gina…

But as said 17 large is not enough to care about, you couldn’t even have your ex knocked off for that, so 4 to 5%/year is simply fabulous.

Not really gambling though.
—————————————

Yes more an instant fix of self loathing and despair.

For a more gradual loss of self esteem… I prefer roulette.

it can take hours and hours to lose 36/37ths.

Stealth said:

Neophyte said:

Put it all in bitcoins, they’re a can’t-lose proposition.

Kingy can give you all the details.

Yeah… but no…

In late 2011, the exchange rate of bitcoin crashed from over $30 in June to below $2 in October.

On 10 April 2013, the bitcoin exchange rate dropped from $266 to $76

http://en.wikipedia.org/wiki/Cherry_picking_%28fallacy%29

Kingy said:

Stealth said:

Neophyte said:

Put it all in bitcoins, they’re a can’t-lose proposition.

Kingy can give you all the details.

Yeah… but no…

In late 2011, the exchange rate of bitcoin crashed from over $30 in June to below $2 in October.

On 10 April 2013, the bitcoin exchange rate dropped from $266 to $76

http://en.wikipedia.org/wiki/Cherry_picking_%28fallacy%29

Cherry picking, suppressing evidence, or the fallacy of incomplete evidence is the act of pointing to individual cases or data that seem to confirm a particular position, while ignoring a significant portion of related cases or data that may contradict that position. It is a kind of fallacy of selective attention, the most common example of which is the confirmation bias

ie the evidence I ‘cherry picked’ was to directly prove a statement false. The statement was ‘they’re a can’t-lose proposition’, but the evidence I presented showed that this is factully wrong.

Stealth said:

Kingy said:

Stealth said:

Yeah… but no…

In late 2011, the exchange rate of bitcoin crashed from over $30 in June to below $2 in October.

On 10 April 2013, the bitcoin exchange rate dropped from $266 to $76

http://en.wikipedia.org/wiki/Cherry_picking_%28fallacy%29

Cherry picking, suppressing evidence, or the fallacy of incomplete evidence is the act of pointing to individual cases or data that seem to confirm a particular position, while ignoring a significant portion of related cases or data that may contradict that position. It is a kind of fallacy of selective attention, the most common example of which is the confirmation bias

ie the evidence I ‘cherry picked’ was to directly prove a statement false. The statement was ‘they’re a can’t-lose proposition’, but the evidence I presented showed that this is factully wrong.

If you don’t sell during the lows, they are still a “can’t lose” proposition. :)

Anyway, they went up by roughly 1000% last year, and have gone up by roughly 1000% again so far this year.

Kingy said:

Stealth said:

Kingy said:

http://en.wikipedia.org/wiki/Cherry_picking_%28fallacy%29

Cherry picking, suppressing evidence, or the fallacy of incomplete evidence is the act of pointing to individual cases or data that seem to confirm a particular position, while ignoring a significant portion of related cases or data that may contradict that position. It is a kind of fallacy of selective attention, the most common example of which is the confirmation bias

ie the evidence I ‘cherry picked’ was to directly prove a statement false. The statement was ‘they’re a can’t-lose proposition’, but the evidence I presented showed that this is factully wrong.

If you don’t sell during the lows, they are still a “can’t lose” proposition. :)

Anyway, they went up by roughly 1000% last year, and have gone up by roughly 1000% again so far this year.

—-

Wow!

You have got onto the overselling patter fast.

Basically, that’s a pretty shit investment…