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Originally Posted by xr6wpn
Just seeking a bit of advice before I go to a financial advisor on some money I made last year when I sold my house.
Ive had the money sitting in a savings account but since the tax man wants to take a bit of a share im just wondering what my options are on where to put it for a couple of years so the tax man cant touch it (not real estate).
The sum is around $120,000
Cheers!
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I believe interest rates will get lower and lower over the next year or so , so having your money in the bank will become far less desirable . My house of 17 years will be sold soon and I will be in the same position as you , that being where to park my money. I have thought about putting some on term deposit for now and investing some on the gold scene. You are wanting to avoid paying so much in tax, who would,nt.
So considering you are staying away from property and probably the share market too , your options are limited . To avoid paying so much tax you could invest some in gold , hold it for over a year , and reduce your taxable income on this by half .
To do this as safely as possible ,you will need to have a good plan in place . It may go something like this , of your $120,000 , you could buy say $30,000 in gold , put $30,000 on three months term deposit , and the other $60,000 on a six month term deposit. You will then need to follow the market fairly closely and reevaluate your situation evry three months . After three months , see what the old gold price is doing , if for example it had gone up say more than 10 % , and things are looking like still surging forward ,you now have a bit of a buffer in place . If you are confident you could either place another $30,000 on the gold scene or reinvest that three month term deposit for another six months . You will then reevaluate your situation at the next three months when your other six month term deposit finishes , if by this stage ,the gold has a big buffer because it has gone up enough and you are confident , invest another $30,000 on the gols scene and put the other in term deposit for another six months. If your are not confident or the buffer has not grown as much as you would have liked put it back on term deposit .
The bottom line is to invest a portion of your money into gold , and when the buffer is up enough for the next lot to be covered fairly safely you can go in again . This is one way to reduce your tax ,by holding for a period of over 12 months , your capital gains tax will be halfed , just something for you to think about anyway . dave289