Have $10,000, now what?

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#1128502 14-Sep-2014 19:21

Donate it to either Outram or Kirwee so they can have faster DSL

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khull

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#1128515 14-Sep-2014 19:26

All-in on Black on the roulette table or get some bitcoins :)

Yabanize

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#1128521 14-Sep-2014 19:36

Donate it to geekzone ;)

kiwirock

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#1128526 14-Sep-2014 19:43

Buy a section in Mataura and put some play equipment on it for bored kids.

I'd donate a third, invest a third, and blow a third. That's my ratio for spending :o)

Finch

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#1128533 14-Sep-2014 20:13

Bet on the All blacks to win their next game.

ech3lon

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#1128537 14-Sep-2014 20:25

Surprised nobody suggested H&B yet

kiwigander

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#1128542 14-Sep-2014 20:43

I am not a registered financial adviser and the following is not to be considered as financial advice.

1. If the individual with the $10K has any non-current credit card debt, he should pay it off immediately and destroy the credit card (get a debit card(s) for convenience).
2. If the $10K is the outcome of saving &/or hard work, go to the next paragraph; if it's a windfall, budget 20% of what's left, after the credit card is dealt to, for a splurge. If the individual hasn't got any splurge in mind, put the 20% into a call account or a 3-month term deposit and keep it there until an idea takes shape.
3. Put the balance into a mutual fund or unit trust of dividend-paying shares.

Just my $0.02 worth.

Sharesies

Trade NZ and US shares and funds with Sharesies (affiliate link).

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#1128565 14-Sep-2014 21:06

mutual fund or unit trust of dividend-paying shares <--- wot dat?

throbb

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#1128570 14-Sep-2014 21:10

https://www.harmoney.com/

PhantomNVD

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#1128571 14-Sep-2014 21:11

kiwigander: I am not a registered financial adviser and the following is not to be considered as financial advice.

1. If the individual with the $10K has any non-current credit card debt, he should pay it off immediately and destroy the credit card (get a debit card(s) for convenience).
2. If the $10K is the outcome of saving &/or hard work, go to the next paragraph; if it's a windfall, budget 20% of what's left, after the credit card is dealt to, for a splurge. If the individual hasn't got any splurge in mind, put the 20% into a call account or a 3-month term deposit and keep it there until an idea takes shape.
3. Put the balance into a mutual fund or unit trust of dividend-paying shares.

Just my $0.02 worth.

Well... now he only has $9,999.98, and BTW, when you start charging for advice you need to register as the financial advisor you say you're not too?

Seriously though, to me $10K sounds like a great local holiday with half (or a cheap foreighn one), and the other half would go on my Mortgage (or any other debt) though as you're a renter, I'd say start up the mortgage fund to become a home owner with the second half?

mckenndk

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#1128573 14-Sep-2014 21:21

There are many Options

Pay off dept, especially dept you are pay interest on

High interest account at your bank might be the safest option.

Bonus Bonds - No interest though but a chance to win from $20 to $1000000 each month

OE - I'm just about to embark on a second OE to Canada did my UK one already and it cost heaps hoping this one won't be as expensive.

Plenty of things to waist it on if there is no interest in saving it for a rainy day.

kiwigander

231 posts

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#1128584 14-Sep-2014 21:29

A mutual fund or unit trust (different terms for technically different things that accomplish the same thing) holds shares in lots of different companies instead of just one or two.

That reduces the risk. One company can crash and burn ("underperform", in the jargon). But if the mutual fund is managed responsibly, then losses in one or two companies will be balanced by gains in others.

Dividend = a portion of a company's profit that gets paid out to the shareholders.

Some companies pay most of their profit out in dividends. Others re-invest most of it in their businesses.

Getting back to the mutual funds - they aren't all the same. Some of them concentrate on "growth" companies. Others concentrate on shares of companies that pay high dividends. (And some concentrate on small companies, some on large companies, etc.)

But your follow-up question makes me think I should suggest an alternative approach.

Replace step 3 with

3. Put the remainder of the money into a 12 month term deposit.

4. Now you have 12 months to learn a bit about investing and what will suit your own situation. Talk to people, preferably people who aren't queueing up to clip your ticket. Have a beer with the boys from the accounts department of your company. Read some books by Martin Hawes and Mary Holm.

Get lots of different ideas. But anyone who reckons they've got THE answer - walk away.

Hope this helps.

Batman

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#1128585 14-Sep-2014 21:30

10k is just enough to fly business class return to San Fran and enough change left over to get an iphone 5c to bring back. there is a site called airbnb ...

PhantomNVD

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#1128591 14-Sep-2014 21:33

joker97: 10k is just enough to fly business class return to San Fran and enough change left over to get an iphone 5c to bring back. there is a site called airbnb ...

but if he stays here and orders an iPhone 6+ off Amazon using the GZ link he'll get GEEK credits for his cash AND be 2 steps further up the Apple Ladder, with change for an "Apple Watch when they come out too!

insane

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#1128610 14-Sep-2014 21:47

Unregistered: No specific debts/goals/risk pref, just unsure what to do with it. A few of the comments look interesting...I guess the bank is safest?

Safe usually means low return on investment. If you're young and are earning good money then you can afford to be more risky with your investment, just like how you have split your kiwi saver up across the different funds (conservative, moderate, growth, balanced etc) , you have changed from the default right?

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