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  1. #1
    Join Date
    Jan 2010
    Location
    Auckland
    Posts
    589

    Default 3 Year Investment... What to Choose?

    I have a $30,000 student loan.

    I want to pay this off in a lump sum in 3 years time. I have regular savings of roughly $10,000 per year.

    I'm wanting to know which would be the best investment for me?

    - term deposits
    - smart shares (fonz or tenz)

    I don't mind a bit of risk, I also don't want big entry and exit fees.
    Last edited by ENP; 20-01-2010 at 09:52 AM.

  2. #2
    Join Date
    Oct 2003
    Posts
    3,578

    Default

    Why do you want to pay it off. Provided you stay an NZ resident, it is interest free. Or are you planing on going overseas in 3 years?

    Term deposits are safe
    my kiwi saver is in smart shares and the unit price has never been above its starting value (except the first few weeks) - i have been as termed in the business - averaging down!. While that has been a bad period, do you want to risk that when you have a short timeframe.

    I here copper has down well recently, why not buy copper futures

  3. #3
    Join Date
    Jan 2010
    Location
    Auckland
    Posts
    589

    Default

    Quote Originally Posted by CJ View Post
    Why do you want to pay it off. Provided you stay an NZ resident, it is interest free. Or are you planing on going overseas in 3 years?

    Term deposits are safe
    my kiwi saver is in smart shares and the unit price has never been above its starting value (except the first few weeks) - i have been as termed in the business - averaging down!. While that has been a bad period, do you want to risk that when you have a short timeframe.

    I here copper has down well recently, why not buy copper futures
    Yes planning to go overseas, also want it out of the way so I can get on with life. Well with term deposits over 3 years it's not like I'll make my fortune, higher risk, higher return for the smart shares?

    Also the 10% discount when paying off lump sums. And copper futures? haha no thank you!!
    Last edited by ENP; 20-01-2010 at 10:34 AM.

  4. #4
    Join Date
    Oct 2003
    Posts
    3,578

    Default

    Quote Originally Posted by ENP View Post
    And copper futures? haha no thank you!!

  5. #5
    Join Date
    Jan 2010
    Location
    Auckland
    Posts
    589

    Default

    It's not the fact that they don't have good returns, it's just that I have no interest in them really.

    I'm beginning to think either term depsoits or maybe corporate bonds since it's only a short term thing.

  6. #6
    Join Date
    Apr 2006
    Location
    Wellington
    Posts
    385

    Exclamation

    Quote Originally Posted by ENP View Post
    I have a $30,000 student loan.

    I want to pay this off in a lump sum in 3 years time. I have regular savings of roughly $10,000 per year.

    I'm wanting to know which would be the best investment for me?

    - term deposits
    - smart shares (fonz or tenz)

    I don't mind a bit of risk, I also don't want big entry and exit fees.
    ENP,

    You owe $30k. You want to have it paid off in 3 years.

    Each year you save $10k. Why complicate things? Pay this 10k, off the 30k debt each year as you save it. In 3 years the debt is gone.

    All the best,

    Niall

  7. #7
    Join Date
    Nov 2005
    Location
    Taupo
    Posts
    309

    Default

    Do you have the $10,000 now, and will slowly save it up i.e. will you be making regular deposits?

    If you are making regular deposits, then a term deposit won't suit.

    Why don't you go into an Australian shares managed fund...some of them have done 15% over the last 5 years and you can make regular deposits into the managed funds.

    But with a 3 year time frame this is risky.

  8. #8
    Join Date
    Jan 2010
    Location
    Auckland
    Posts
    589

    Default

    Quote Originally Posted by sarahd View Post
    Do you have the $10,000 now, and will slowly save it up i.e. will you be making regular deposits?

    If you are making regular deposits, then a term deposit won't suit.

    Why don't you go into an Australian shares managed fund...some of them have done 15% over the last 5 years and you can make regular deposits into the managed funds.

    But with a 3 year time frame this is risky.
    Regular deposits of $200 per week. Don't know about the management funds because they would be costly to enter and exit.

    Maybe thinking about art prints ranging from $2000-$5000?

  9. #9
    Join Date
    Nov 2005
    Location
    Taupo
    Posts
    309

    Default

    You are wrong about managed funds. I would check them out before dismissing them. Art prints = speculation not investment!

  10. #10
    Join Date
    Jan 2010
    Location
    Auckland
    Posts
    589

    Default

    Do you mean these types of managed funds?

    http://www.fundsource.co.nz/FindAFund.asp


 

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