Options for investing 40k

[Realist]

why have a picture of our good old Johnny Wilkinson when he single handidly beat the Aussies in the last rugby world cup final.

Keep your friends close and your enemies even closer.

Nahh, I just like the photo.

Its all about timing.

It sure is!!

I don't own a house and unfortunately I'm a bit older than you guys.
But, I could not afford a house in Sydney 7 years ago, some of my friends could, so for years I had to sit at dinner parties hearing about how much money they were making, and how I should invest and how just painting a feature wall was so worthwhile, and how a few renovations have made them thousands. :swear:

My friends all did make alot of money, in some cases nearly $200,000.

But... I am a patient man, very very patient.

I did not buy because I knew I had missed the boom and I did not want to catch the bust. Every person I know told me to buy, Sydney prices were rocketing and programs like the Block and what not were encouraging everyone to buy a place, do it up, and sell it for $200K more 6 months later.

I rented instead, I got a nice 2 storeyed apartment in one of Sydney's most expensive suburbs and I pay $175 a week sharing with a chick. I still pay the same amount now. I pay less than $10K a year.

So my friends make a good profit, sometimes just a paper profit which they still perceive as real, then they get greedy, they buy investment properties, or a ****hole in a good area as a do up.

Fast forward to this year, they are redrawing off their mortgages, trying to sell and nobody will buy, they've sacrificed their $35K first home owners grant (including stamp duty concession) and they are stressed out and skimping and saving to make ends meet. Interest rates are rising, house prices are going down. Amazingly 2 lots of friends are selling and going to rent instead!

Me, I'm still renting and putting what I am not paying on mortgage interest rates into shares.

I'm waiting until rents go up, interest rates go up, and houses come down more, then I'll mortgage myself to the hilt! I wanna catch the next boom!!

Maybe in a couple of years my friends will be renting when I own a home! :grinsking

Not that I am in competition with them but it would amuse me, as I said I remember those dinner parties well. Feature walls - oh dear! Property is now a dirty word with them.

 

[Ageo]

Before you get carried away with all the advice about turning 40K into a million in no time business you need to learn how to protect your capital first and foremost.It is not easy making high returns with limited risk to your capital.

Learn about money/risk management before gambling 40K away to try and make a ridiculous amount of money straight away.

Hehe Porper i didnt say its going to happen overnight, but if your determined, put the time and effort in and willing enough then it is very possible indeed.

A 1 big part of that learning is as you mentioned money/risk management.

 

[Realist]

How quickly could you turn $40K into $1M after tax?

Assuming I earn no additional money to contribute to this it'd take me many many years. But I'd get there without losing it.

Anyone who thinks they can do this fairly quickly is dreaming. Tax for one will kill you.

 

[wayneL]

How quickly could you turn $40K into $1M after tax?

Assuming I earn no additional money to contribute to this it'd take me many many years. But I'd get there without losing it.

Anyone who thinks they can do this fairly quickly is dreaming. Tax for one will kill you.

It's a piece of p!$$ according to at least one options guru. In fact he claims to be able to turn $2k into a million in a year. "Just double up 9 times and you're done" ........... easy! (Then presumably you do a runner and live happily ever after in the Bahamas)

I really do despair that people fall for this $%^&.

 

[Realist]

a piece of p!$$ according to at least one options guru. In fact he claims to be able to turn $2k into a million in a year. "

Smart guy obviously.

And generous too!!

Instead of actually doing it himself and making trillions for himself he teaches other people how to do it for a small fee.

Where do I sign up for this? :freak3:

 

[Realist]

Investing $40K and getting a 10% return after tax and brokerage fees etc each and every year (which is definately not easy) would take..

10 years to get to $100,000

27 years to get to $500K

And 34 years to get to $1M

BUT.... That $1M would only be worth $340K in todays money cause a 3% yearly inflation eats away it's purchasing value.

It would take nearly a lifetime to do it realistically!!

 

[wayneL]

Smart guy obviously.

And generous too!!

Instead of actually doing it himself and making trillions for himself he teaches other people how to do it for a small fee.

Where do I sign up for this? :freak3:

Would you like the basic course for $1999.99. This will only make you a few million.

But for $7999.99, you can have the super duper, ultra special, top secret, available only to the lucky few, prooooooooofessional option traders course.

We'll have you shouting Bill Gates and Warren Buffet at the Ritz and asking you the secret to your trillion dollar fortune by next week.

Sign right here_________________________ :casanova:

 

[Realist]

Hmm, I saw this ad, or something similar when I was in the States 2 weeks ago.

Barmen, and housewives were telling me how they made megabucks trading on foreign exchanges in their spare time.

I gotta admit I would sign up if I lived in the states.

But.....

Only out of curiosity, it has a 30 day money back guarantee, I'd sign up, read about it, laugh at most of it and return it for free.

So if you "invest" $2K and double it to $4K, then after tax you've only got $3K. How many trades do you need to make the $1M if you actually pay tax?

After 9 trades where you double your money..

$2
$3
$4.5
$6.75
$10K
$15
$22.5
$33.75
$50K
$75K

You only end up with $75K

Is not roulette a better option?

 

[nizar]

Would you like the basic course for $1999.99. This will only make you a few million.

But for $7999.99, you can have the super duper, ultra special, top secret, available only to the lucky few, prooooooooofessional option traders course.

We'll have you shouting Bill Gates and Warren Buffet at the Ritz and asking you the secret to your trillion dollar fortune by next week.

Sign right here_________________________ :casanova:

Hahahah !

Wayne thats GOLD... ur best post yet! :

 

[Ageo]

Hehe, Wayne ill be up for your course but on 1 condition.


You have to dress up in a Bear suit!

 

[clowboy]

Living and owning in perth , I can see some faultlines starting to show in the property market already. Seen quite a few articles as of late saying how tight things are for people and bankruptcies on the rise etc etc. We havent even seen a rate rise yet either. 0.5% would get people talking, 1-2% would prove an interesting experiment.

Having said all that, I can't be too quick to discount the china saga, mining is big time booming ATM and people are earning bucket loads.

 

[wayneL]

Hehe, Wayne ill be up for your course but on 1 condition.


You have to dress up in a Bear suit!

For 8k a pop I'll dress anyway you like

​

 

[Ageo]

LOL imagine walking on the floors of the Sydney Futures Exchange with tha suit.


hehe i think it would be a fantastic strategy to put them off their game.

 

[Dan_]

For 8k a pop I'll dress anyway you like

This has got to be the post/pict of the year

BTW has all those year trading the USA left you feeling stuffed at all?

 

[The Mint Man]

I had to sit at dinner parties hearing about how much money they were making, and how I should invest and how just painting a feature wall was so worthwhile, and how a few renovations have made them thousands. :swear:

While my situation wasnt as bad as that, I hear what your saying. Also on top of that, God knows what my missus had to listen to from my mates girls. baby and wedding talk etc etc etc. haha, give me a break quit the extream smalltalk

Fast forward to this year, they are redrawing off their mortgages, trying to sell and nobody will buy, they've sacrificed their $35K first home owners grant (including stamp duty concession) and they are stressed out and skimping and saving to make ends meet. Interest rates are rising, house prices are going down. Amazingly 2 lots of friends are selling and going to rent instead!

so they got cocky and couldnt realise that what they were doing was too good to be true, it wasn't goinmg to last forever. When you invest you have to have some sort of plan and their plan worked in the market they were in at the time, however if you want to make money in every market (up, down, sidewards) your plan has to continuously change. Seems to me that they became complacent with what they were doing and just kept doing it.

 

[The Red Baron]

I'm looking moving out of home and renting with a mate. He's in nice little pad 5km (push bike riding distance) from my work in the Perth CBD. Has a balcony with a gas fitting so i can fire up the bbq and have a few beers, so im happy. $120 each a week. can't complain pay $50 board a week living at home anyway.

Just got the $40k in a Bankwest Online account 6.4% interest, get some cash taken out every pay so i dont see it. Works out well so i doesnt go to the grog, taxis or late night dodgy kebabs.

Still have my 14 nights at Bounty Hotel every year in Bali. Wouldn't mind a Euro Contieki trip but would take out a nice cut out of my deposit.

Grumpee Boi, i've been working at same place for 6 years now. But its my income thats killing me. I'm only looking at a 200k loan + my deposit. In the Perth market at the moment, wont get me very much at all.

I'm happy to wait and see if any an opportunity arises.

 

[binh25]

Stay away from Rio and BHP, They are good company but the price for their stock is now all speculation.... in another word Over Price..

 

[Ageo]

Baron before buying a house i suggest you read Steve Mcknight's book.

"0 to 130 properties in 3.5yrs"

Once you read that, you will understand that your precious deposit could actually be building your real estate portfolio (for positive cashflow) and im not just talking about finding cashflow positive properties but more so wrapping properties, lease options etc.. (which you will learn about in the book).

6.4% in your bank is better than nothing but IMO can be used much more effectively in so many areas. Thats if your looking to increase it of course...

 

[Sean K]

Binh, BHPs PE is about 11. Overpriced? The company will come in with the biggest corporate profit in history once again this year. Probably one of the safest bets around at the moment.

 

[mit]

Hmm, I saw this ad, or something similar when I was in the States 2 weeks ago.

Barmen, and housewives were telling me how they made megabucks trading on foreign exchanges in their spare time.

I gotta admit I would sign up if I lived in the states.

But.....

Only out of curiosity, it has a 30 day money back guarantee, I'd sign up, read about it, laugh at most of it and return it for free.

So if you "invest" $2K and double it to $4K, then after tax you've only got $3K. How many trades do you need to make the $1M if you actually pay tax?

After 9 trades where you double your money..

$2
$3
$4.5
$6.75
$10K
$15
$22.5
$33.75
$50K
$75K

You only end up with $75K

Is not roulette a better option?

Not quite right as you double nine times in the year. So you only pay tax at the end so it is

2
4
8
16
32
64
128
256
512
1024

and then pay tax on the $1022k that you made which would leave you with

$513k. Still nice.

MIT