# What would you do with $15,000 cash tomorrow?



## schnootle (19 February 2009)

My current bank interest is at 3.75%, deduct inflation and tax on interest and we get somewhere near zero or negative - it is not losing badly but it is not ideal. It seems inflation is on the way down, but so are interest rates. It seems this is a better time to be in debt than have spare cash. I am in the process of canvassing options.

I realize there is no best answer, but if you had about that much in a bank account what would you personally do and why?

Any responses are appreciated.


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## nomore4s (19 February 2009)

*Re: what would you do with $15,000 cash tomorrow*

I'm mostly in cash atm, besides my trading account and I have just started buying longterm shares but have only a small % of that portfolio invested.

Unfortunately there are not too many options around atm considering most assets are coming down in price as well as most other investments. And in reality $15,000 doesn't really give you many options.

My personal view is cash is the safest place to be atm. I would rather be getting 3.75% interest and paying tax on it then losing 25-30% of it and not paying tax.

My personal view about people worrying about inflation especially with amounts under $100k is that it is a waste of time. I know the theory about your money buying less but unless you are holding onto that money for 10+ years it's hardly worth worrying about - the way you should view it is that you now have more money in your pocket to be able to invest/buy with in the future.


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## CanOz (19 February 2009)

*Re: what would you do with $15,000 cash tomorrow*



schnootle said:


> I realize there is no best answer, but if you had about that much in a bank account what would you personally do and why?
> 
> Any responses are appreciated.




I would see my GF off on an all expense paid trip to Tibet for three weeks.....and then i would board a plane to Thailand for three weeks with my best mate!



Cheers,


CanOz


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## tech/a (19 February 2009)

*Re: what would you do with $15,000 cash tomorrow*

If you have a line of credit on your mortgage then put it there.

If you have any credit cards then pay them off.


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## shaunQ (19 February 2009)

What if there was deflation?


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## nunthewiser (19 February 2009)

fly to tibet for 3 weeks


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## bassmanpete (19 February 2009)

For me it'd go into energy stocks. I like coal seam gas so I'd probably increase my holdings in Arrow, Bow, etc. It's a bit greener than coal or oil and it's barely off the ground yet.

Energy is one thing that's a constant requirement (along with food & water) whether there's a boom or a bust. We still need to keep warm or cool, we're still going to drive our cars, ride on trains or buses, watch tv, do our shopping/laundry/cooking, go to restaurants/cinemas/theatres/rock concerts. I could go on and on but you get the picture? All these things require energy.


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## Glen48 (19 February 2009)

Buy Gold
Buy Gold Beer
Buy a Pizza and watch your Gold price rise.


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## johenmo (19 February 2009)

Most sensible suggestion - Tech/a
Most fun suggestion - CanOz.

Depends on yr circumstances.  We had 20K come out and put it into the mortgage. Got rid of 20% of what was left.  Bank wants to charge around 6%.

No debt?  Cash > shares atm, IMO.  But I do wear an L plate.


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## barney (19 February 2009)

CanOz said:


> I would see my GF off on an all expense paid trip to *Tibet for three weeks*.....






nunthewiser said:


> *fly to tibet for 3 weeks*




 

funny man Nun ........


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## CanOz (19 February 2009)

nunthewiser said:


> fly to tibet for 3 weeks




I'll send you flight number and you can pick her up from the Airport nun!

Cheers,


CanOz


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## So_Cynical (19 February 2009)

What a coincidence, im actually getting about 15K early next week, capital and 
profits from my averaging down into IAU and LGL...love them Goldie's.

First its going into my Commsec high interest account, then into some cheap quality 
stocks...trying to pick the best of the hardest hit...not the smashed.

Also thinking about a super conservative index fund...for some of it, thinking that at 
least that way your insulated from single stock disasters....oh and 2 grand on the CC


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## sammy84 (19 February 2009)

Buy a race horse in time for spring carnival. Might be a dud horse but at least it will get you into marquees


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## Glen48 (19 February 2009)

Buy the horse from Harvey Norman 50 Mths nothing to pay.


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## Julia (19 February 2009)

Depends on your age and circumstances.

If you were 80 and have more funds than you'll ever use, spend it on whatever you're still able to enjoy.

If you're 20 pay off debt if you have any, buy some shares.

In between, some sort of compromise between the two above.


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## Bill M (19 February 2009)

I would put 10K in my index fund and get income of about 9% franked at 55%. The index Fund covers the ASX 300.

The other 5K I will join CanOz and go to Thailand.


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## sinner (20 February 2009)

7.5% gold
7.5% gold miners
5% energy play
10% hard cash in safe deposit box or under mattress
10% high yield high risk
40% AUD (spread across banks, well capitalised credit unions and gov bonds)
20% foreign currency (I like euroyen bonds, euroswiss bonds, and straight up USD in a safe deposit box).


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## Lantern (20 February 2009)

There's no doubt about it, the Thailand option will put the biggest smile on your face.


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## Ashsaege (20 February 2009)

i'd buy a mid 70's mercedes 350SL.

or fly to Tibet!


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## Sith1s (20 February 2009)

Go to a casino and put it all on Red


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## hobo-jo (22 February 2009)

Sith1s said:


> Go to a casino and put it all on Red




Why not just drop the $15k on Red (ASX), potential for higher return


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## Temjin (22 February 2009)

well..I thought we are not supposed to give advice here? hehe But here is what I would do.

I agree with tech/A, if I had any "bad" debt, I would use repay them completely. A financial planner would have said that the money spent would have generate an after-tax return of whatever interest rate you paid for the debt divided by (1 - your net tax rate). (Yes, I know some of us hate FPs here...but that is a very common advice) 

If I don't have any bad debt, I would keep most of them in cash and allocate no more than 25% in gold/silver, preferably physical. 

But that's just me.


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## >Apocalypto< (22 February 2009)

schnootle said:


> My current bank interest is at 3.75%, deduct inflation and tax on interest and we get somewhere near zero or negative - it is not losing badly but it is not ideal. It seems inflation is on the way down, but so are interest rates. It seems this is a better time to be in debt than have spare cash. I am in the process of canvassing options.
> 
> I realize there is no best answer, but if you had about that much in a bank account what would you personally do and why?
> 
> Any responses are appreciated.




Blow it all on:

A. Cocaine and B Hookers.


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## Big_Daz (27 February 2009)

>Apocalypto< said:


> Blow it all on:
> 
> A. Cocaine and B Hookers.




Touche


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## dalek (27 February 2009)

>Apocalypto< said:


> Blow it all on:
> 
> A. Cocaine and B Hookers.




You wouldn't be an AFL footballer by any chance ?!?


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## prawn_86 (27 February 2009)

dalek said:


> You wouldn't be an AFL footballer by any chance ?!?




They just need A. They have enough 'fans' that they dont need to pay for B...


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