Hey Lifehacker, I’ve recently come into a decent amount of money but I’m not really sure what to do with it? Fortunately I’m debt-free and have no dependants. How should I go about investing it for the future? Thanks, I’m In The Money
Australian money picture from Shutterstock
You don't mention whether or not you own your own home. If you don't, then it's hard to look past using the money to cover the deposit on purchasing your own place. Property investment has a number of advantages in the Australian market: you're not subject to capital gains tax on your own residence, and if you're buying an investment property you can use negative gearing to reduce your overall tax bill. Check out this guide to buying your first home for some more basic ideas.
The other area with a considerable tax advantage is investing in topping up your existing superannuation. We've recently seen the amount of compulsory superannuation that employers have to contribute frozen at 9.5% until 2021, so if you have the option to top that up, you'll enjoy a better lifestyle in the future. There's a cap on the amount you can contribute into a super fund from after-tax income; for 2014-2015, this is $180,000.
Those are both basic ideas, but if you're not keen to learn the details of stock market investments or other money-making approaches they definitely make sense. What other strategies would readers recommend? Tell us in the comments.
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