A$500k windfall in our 20s—Time to Strategize
We're on cloud nine! My partner and I just landed a whopping A$500k (sry I can not explain its source), and we're now in the exciting position of deciding how to make the most of this cash. Here's the scoop on our current financial standing:
- Each of us don't own a house.
- Our combined annual income is A$150k, with a boost to A$170k on the horizon next year.
- It's just us and our pooch for now, but we're considering adding a little human to the mix in the next few years.
- We're debt-free, except for the car mortgage and a smidge of student loans (about A$70k total).
We've already decided on a couple of moves:
- Wiping out those student loans.
- Trading in our trusty 2001 Corolla for a more reliable car from the 2010-2020 range.
With the remaining $500k, we're weighing our options. Here are the top contenders:
- Buying a house with better growth potential and room for a family.
- Investing in an index fund or parking the money in a high-yield savings account.
- Each of us don't own a house.
- Our combined annual income is A$150k, with a boost to A$170k on the horizon next year.
- It's just us and our pooch for now, but we're considering adding a little human to the mix in the next few years.
- We're debt-free, except for the car mortgage and a smidge of student loans (about A$70k total).
We've already decided on a couple of moves:
- Wiping out those student loans.
- Trading in our trusty 2001 Corolla for a more reliable car from the 2010-2020 range.
With the remaining $500k, we're weighing our options. Here are the top contenders:
- Buying a house with better growth potential and room for a family.
- Investing in an index fund or parking the money in a high-yield savings account.
We're all ears for any advice or experiences you've had in similar situations. Looking forward to your thoughts!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
104974717 : you can go genting highland，ALL IN and PROFIT![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
TOLKKI : Don't tell your friends, try and minimize your family knowing if possible.
Griffo_au : Personally I have no issues updating the car. Hecs etc isn't "Bad debt" but if you want the piece of mind of being "free and clear" you can pay it off. Its not indexed again until 1 June. So you have time to make that decision.
Everyone's circumstances are different. On that basis what's right for me may not be right for you. Here are some things to think about.
- Take some time to think about what you want to do next. Don't rush to sell your place. Its likely still good to keep as an investment. Park the money in your loan offset. Its now effectively paid off. Then work out what you want.
- if a bigger place is a consideration. Think about updating, equally there isnt anything wrong with staying where you are. Bigger houses etc cost more to maintain, etc so make sure thats factored in any decision
- keep living like you have a mortgage for a bit, but divert the mortgage payment into other investments. on pure rate of return, max out your super (tax advantages etc). Then look at index fund investing or a investment property
- its ok to spend some of it (not just a car). if you want "that trip to Europe" etc take it. You are also only young once. Ita about finding a balance that works for you.
You have the foundation to become very wealthy earlier than most. Good luck with it :)
kindtoluck : You can split your money with me half and half.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
51IDN OP TOLKKI : got it
51IDN OP Griffo_au : thx for that. really detailed
juujuuu : Is that money enough to raise a fund?![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
If not, just spend it half as you like and save half of them. (Disclaimer: I am a YOLO person.