Redundancy money to spend

Discussion in 'Wealth Creation & Management' started by Goldhamster, Feb 16, 2014.

  1. Goldhamster

    Goldhamster New Member

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    Hi Guys/Girls,

    I got made redundant the other day and am expecting 6 months worth of pay in a few weeks.
    Some of it I have set aside for a course that would allow me to teach for a RTO. There is also a better than 60:40 chance that I have secured myself a new job yesterday.
    Which leaves me with the question ,what do I do with the money? I do not want to lock it up straight away but would like to keep some liquid in case the transitioning phase doesn't pan out the way I envision it.
    I run my own SMSF and have some physical.

    What would you do ?

    Thanks
     
    Goldhamster, Feb 16, 2014
    #1
  2. dagsgarrett

    dagsgarrett Member Silver Stacker

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    Pay off any debt you have get out of the system, or put it into unallocated silver and double your money by the end of the year then pay of any debt and get out of the system, set a mental stop loss as to when you would sell unallocated if price goes down then pay of debt and get out of the system. :)


    Edit (Not Financial Advice) :)
     
    dagsgarrett, Feb 17, 2014
    #2
  3. Jislizard

    Jislizard Well-Known Member Silver Stacker

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    I am with dagsgarrett, pay down debt.

    Not so sure about the unallocated doubling at the end of the year but if it does then I am laughing.
     
    Jislizard, Feb 17, 2014
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  4. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Pay credit card, store debt, car debt etc only. Don't put it into a mortgage if you have one or super.

    Keep enough cash for 3 months expenditure.

    If there is anything left over then you can invest it or put it into an offset if you have one.
     
    mmm....shiney!, Feb 17, 2014
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  5. trew

    trew Active Member Silver Stacker

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    Suggest doing nothing until you actually have started a new job and are sure it will last
     
    trew, Feb 17, 2014
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  6. Goldhamster

    Goldhamster New Member

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    Great feedback guys/gals.
    There is no debt to pay off and I am curious as to why you advise against putting some into my SMSF ? What are the dis/advantages ? Does the government match my contributions ?

    Thanks
     
    Goldhamster, Feb 25, 2014
    #6
  7. Nedsnotdead

    Nedsnotdead Active Member Silver Stacker

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    Go on a holiday or treat yourself to something you've always wanted or wanted to do. Spend some quality time with friends and family. Even a visit to someone you haven't seen in a long time can be very rewarding.
    A good opportunity to get 6 months of supplies if you feel there may be some type of event in the future.
     
    Nedsnotdead, Feb 25, 2014
    #7
  8. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    Once it's in your super.... it's very VERY hard to get out.... for a long time.

    IMO You're better off investing it yourself (outside of your SMSF) because if you ever need it, you can sell the investment and use your wealth elsewhere. You can't do that if it's locked away in a Super Investment. (unless you're on really hard times..i.e. permanently disabled.

    No, the Govt won't match your contributions. They only do that for that 1st home saver's account 'thingy'.
     
    Clawhammer, Feb 25, 2014
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  9. JulieW

    JulieW Well-Known Member Silver Stacker

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    Actually I think they match $1000 contibution with $500 if you're under the taxable line.
     
    JulieW, Feb 25, 2014
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  10. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    Correct once again...

    Eligibility for the super co-contribution

    http://www.ato.gov.au/Individuals/Super/In-detail/Contributions/Super-co-contribution/

    here's the calculator for the co-contribution

    http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=superc_calc.xr4&go=ok
     
    Clawhammer, Feb 25, 2014
    #10
  11. Mr Medved

    Mr Medved Member

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    Anything but super. Don't put it in super. Too many strings attached.

    So what did you do?
     
    Mr Medved, Jun 5, 2014
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