# Where do you put your non-stock money?



## Wanwo (21 June 2006)

I want to find a place to keep cash, at this point only 10K, where it's not exposed to the stockmarket.

Any suggestions?

Conservative managed funds? Term deposits? Cash management fund? Is there anything else out there?

thx


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## bullmarket (21 June 2006)

Hi wanwo

I keep the cash portion of our portfolios in an online only savings account.....ie.....ING Direct, EsandaSaver etc...

I think most if not all the banks now have online only 'virtual' savings accounts available.....they pay a higher interest rate and your funds are virtually at call since you make overnight deposits/withdrawals from your online only account to a nominated/linked 'real' bank account.

hope this helps

bullmarket


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## NettAssets (21 June 2006)

Im putting most of mine into Electronic gold accounts at the moment. most in e-gold but still reseaching cheaper and safer options.
Entry and exit fees are a bit high but hopefully offset by higher returns and its very liquid.
you can also play the money market by going in as $US and out as $Au for example as long as your banks spreads for other currencies is OK.
Regards John


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## Realist (21 June 2006)

I'd recommend you look for cheap alcohol sales in your local area and really stock up. You can get some good wines cheap, and often cases or even kegs of beer are on sale.

After you drink them take your empties to SA where you get a 5 cent refund each.

But first buy Fosters shares. Australia's greatest brands all in one company.

That way you win in 4 ways - your shares go up, heaps of alcohol on hand = heaps of friends as well, nice refunds and you're recycling to keep the greenies happy, ohh and you get pissed whenever you want.


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## wayneL (21 June 2006)

Realist, you might be on a winner there.

Alchohol sales go up in recessions apparently.

...a recession coming to a town near you


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## hissho (21 June 2006)

why not open a "Telenet saver" account with Bankwest and get paid for 6.4%, and use the interest you earned to get some good books to educate yourself?
www.abetterdeal.com.au


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## bullmarket (21 June 2006)

hi hissho



			
				hissho said:
			
		

> why not open a "Telenet saver" account with Bankwest and get paid for 6.4%, and use the interest you earned to get some good books to educate yourself?
> www.abetterdeal.com.au




from memory, that 6.4% is only for the 1st 12 months and then the interest rate drops to a little below what most other banks are paying.

So if you leave your funds there for the long term you end up losing out.


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## Sean K (21 June 2006)

:iagree: 

I only have enough cash to pay the rent and buy red wine. Mostly skinless at the moment, but they are just such great value.


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## hissho (21 June 2006)

true. 

so this year i put it under my name, next year my wife's name , a joint name the year after...that's already 3 years. other banks will come up with a better offer due to competition so i won't worry for the coming 3 years...

there is a will, there is a way!
cheers



			
				bullmarket said:
			
		

> hi hissho
> 
> from memory, that 6.4% is only for the 1st 12 months and then the interest rate drops to a little below what most other banks are paying.
> 
> So if you leave your funds there for the long term you end up losing out.


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## The Mint Man (21 June 2006)

What BM said, however I belive commonwealth is paying more ATM



> But first buy Fosters shares. Australia's greatest brands all in one company




Dont usually drink beer but when I do I try not to touch VB... tastes like cats piss


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## GreatPig (21 June 2006)

The Mint Man said:
			
		

> tastes like cats piss



And when did you last taste that? 

GP


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## Sean K (21 June 2006)

VB - The real Australian beer.

But, I started on Melbourne Bitter because Dad drank Melbourne.

Now, just clean skins and the odd label including the words Coonawarra and/or Shiraz.


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## kerosam (21 June 2006)

mint man,

u mean u drank cat piss before????  

sorry mintie, just can't help it.


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## dennisll (22 June 2006)

Hi Wanwo,

If you have a mortgage, it would be wise to put the money in an offset account as it would be effectively earning the interest rate of your home loan plus whatever you would've paid the taxman from other investments.  If you don't have a mortgage, I would suggest putting it in a high-interest online savings account like Dragon Direct or ING if you are a disciplined saver and won't be tempted to spend it.  If you know that you might access those funds for non-investment purchases, it would probably be better to put the money in a cash management account or term deposit.

Happy Investing,

Dennis


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## bullmarket (22 June 2006)

Hi again wanwo

another option to the one I posted earlier which imo is also worth considering, assuming you are looking to 'park' some funds somewhere with a reasonable return, is to maybe have a look at Rubicon America Trust (RAT).

RAT is an ASX listed LPT which manages 33  high grade properties with mostly gov't department tennants in the US.

They have just announced their distribution for the June quarter and are now on a prospective yield of ~13%   

RAT is currently trading ~19% below its NTA of $1.23 and I assume that is primarily because of their relatively high gearing, but I'm not convinced that their high gearing is a major issue since they have taken hedging positions against currency and interest rate movements.  I suspect that if the general market turns genuinely bearish at any stage, then the ~13% yld atm will look pretty attractive to fund managers looking for safer more stable investments.

Anyway, just some more   food for thought.

cheers

bullmarket


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## Realist (22 June 2006)

> Dont usually drink beer but when I do I try not to touch VB... tastes like cats piss




 

 :fu: 


Why not try Cascade, Carlton Draught, Crown Lager, or Fosters instead?

Or some Penfolds Grange Hermitage? Is that not good enough for you?

Or 3 cougars thanks!


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## cuttlefish (22 June 2006)

wasn't it 5 cougars?

You're winning me over to the idea of buying some fosters shares realist - I like the idea that every time I have a beer its adding to my investment   .... mmmm.... beer.     :drink:    



yeah I'll go the cascade over the vb though.


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## bullmarket (22 June 2006)

yep it was cuttlefish 

from memory, the original order was:

2 gin 'n tonics

2 vodkas

and a skotch   


5 cougars thanks....!!!!!


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## Wanwo (30 June 2006)

dennisll said:
			
		

> If you have a mortgage, it would be wise to put the money in an offset account.
> 
> If you don't have a mortgage, I would suggest putting it in a high-interest online savings account like Dragon Direct or ING.




Yep I did have an offset account. It's a very sweet deal - the money made not being income so I was effectively getting 6.92% tax free. Hard to do better than that with at call money in the bank. But I've sold my property now, which is why I've been scooting around for something else. Probably go with the ING. Nice product.


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## robert100 (1 July 2006)

Hi,
  Well if ur amount is small then u have banks for that but if u wanna invest large amounts then share market is the place for that bcos that is the place where you can get value for your money.

robert

http://www.creditsolutionsteam.com/


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## jet-r (1 July 2006)

Realist said:
			
		

> I'd recommend you look for cheap alcohol sales in your local area and really stock up. You can get some good wines cheap, and often cases or even kegs of beer are on sale.
> 
> After you drink them take your empties to SA where you get a 5 cent refund each..................




sounds like a good idea mate


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## Smurf1976 (2 July 2006)

The Mint Man said:
			
		

> Dont usually drink beer but when I do I try not to touch VB... tastes like cats piss



Never tried the cat piss. Not planning on trying it either.  : 

Living south of the great Tassie beer divide I'll nominate Cascade as a good beer. If I lived in the north of the state then it would be Boags...   

As for keeping cash, at present I have a significant amount in an ING online account although I'm getting a bit fed up with their increasing margins. They don't pass on the full rise in interest rates when they go up - 0.2% last time versus RBA rate rise of 0.25% and they've done this a few times now. No doubt their mortgage customers get the full rise passed straight through.  

I'm looking around to see if there's a better deal without constantly increasing margins. Commonwealth and BankWest seem reasonable although it's a competitive market so the difference may not last.


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