How should I invest $10,000 in Australia?
That’s a question many Aussies may be asking themselves right about now, with over 600,000 people having applied to access $10,000 of their Super as part of the COVID-19 early release program.
We’ve discussed this topic at length here on Rask Media, on The Australian Finance Podcast, and elsewhere.
For example, we think it’s a shame the Government chose to allow people to take money from their Super — a move which will cost some Australian households hundreds of thousands of dollars over their lifetime — rather than borrow from the Government budget — which costs just 0.25% per year!
If you need to take money from Super, please exhaust your other options first.
And, of course, the usual rules apply: speak to a financial adviser and accountant before you act, make sure your insurance inside Super isn’t affected and always read the important legal documents like the Super fund’s PDS.
That said, if you are like the tens of thousands of Australians who follow our Finance Podcast series, you’re probably thinking, ‘if I do take money out of my Super, couldn’t I just invest it myself?’
For example, let’s say you:
- Are responsible with money (i.e. you have a track record of saving)
- You want to invest, and
- You’re eligible to get $10,000 from Super
You could, as an example, chose to invest in the same things as your Super fund. If you’re in an ‘indexed strategy’, you should know there are ETFs that also use index strategies.
Earlier today I jumped into my home office to film the following video which explains the basics of where to invest. If you’re looking for more concrete ideas, please keep reading below to fund the links and resources.
Remember, if you do take money from Super you should increase your regular contributions back into Super once things return to normal. Speak to your accountant, you might also be eligible for a tax deduction when you contribute to Super.
Here are some of the video resources:
- My investment research memberships
- Australian Finance Podcast
- Rask’s ETF video
- Our ETF course
- How to buy shares video
- Share Investing basics course
This website & contents contain general financial advice/information only. It is NOT financial advice of any kind. That means the information does not take into account your objectives, financial situation or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser or financial adviser.
