QUOTE(skiddtrader @ Feb 27 2012, 02:14 AM)
Since you did not state your desired returns from your 200k cash savings, I assume you are hoping to make something better than the FD rate.
If I was in your position where your current house is already paid for and have a large amount of cash savings, I would buy another property for investment. Not necessarily be an expensive property but something that can generate income. Since you have already a place to call home, the 2nd property can be an investment and potentially provide you another form of income if the yields are good. It can also be seen as a education asset for your children next time they want to study overseas or whatever, you can sell the house.
Investments in gold/silver have it's own risks. I do suggest you really read more about it and decide how much risks are you willing to take before putting anything in.
Unit trusts whether ING or PB Mutual also has its own risks. Some say it's lower because it's being managed by a fund manager. Whatever the case, always read as much about it and the evaluate the risks involved. Unit trusts also has annual fees regardless of how well the fund is doing. Meaning you can be losing money in the fund but still be charged your annual management fees.
Hi, thanks for replying.
Desired return is of course the higher the better but I also know the rule: the higher the return, so is the risk. I am not greedy, nor do I have big dreams. In fact, I just thought of leaving the money somewhere (not FD) and let it roll itself to some sum substantial for our children some 20 years in the future.
I am not good with property, always skeptical thinking if I buy a property and fail to sell it, I have to finance the loan for it. If you are thinking of renting out a property, well, I have thought about it as well. Renting out a place is scary and this is based on experience, we had tenants running away without paying and then we had to settle the bill for them. It was an old double storey terrace, belonged to my parents but in the end, we decided to sell it. Renting... need to find the right location and crowd. When you buy a place and then service the loan, you rent it out for like 1 - 2k, is barely enough to cover the loan. Quite the contrary, I have to finance the balance and that will bring me into a negative rather than just invest the money I currently have.
I know gold has its value and its ever growing but I am new to this silver thing. Havent found the time to read about it, that's why I came in here to ask. Thanks for telling me that unit trust has annual fee. I heard of it but not sure how much is it really. We checked out PB website and saw the fund at +0.1 / -0.1, nothing impressive - probably slow movement now.
Just wondering what other kind of ideas a more experience forumer can share.
QUOTE(wongmunkeong @ Feb 27 2012, 08:27 AM)
Personally, IF i had a lump sum of $200K and not financial expert (cannot be mar, U & hubby doing well - savvy enough mar right?), i'd:
a. Plonk $ 50% into FD,
split into 2 * (2 or 3 mths term) ie. put in 25% now, put in another 25% next month, thus any month, i can access 25% for cash investments
b. Plonk $ 50% into a bond fund(a) + (b) is to hold the $ while I do the below
c. Learn about Asset Allocation and re-allocation/re-distributionSimple big picture control over my total assets across several classes, thus i invest always with the big picture in mind, not just which REITs/Stocks/Funds/Gold/Silver
d. Learn about KLSE REITs & Stocks+Real Estate Investment Trust (REITs) is similar to being a landlord WITHOUT the headache of being a landlord + more liquid than buying properties BUT not much leverage game. Knowing this enables me to evaluate & invest
+Stocks - REITs are a type of stocks U can buy, thus knowing this enables me to transact properly
e. Learn about Gold/Silver & Precious MetalsIt looks more of trading than investing UNLESS I know the underlying trend OR value points
Some % into this is possible but i wouldnt bet the farm on it (again, Asset Allocation big pix while investing or even trading)
f. After learning the above asset allocation (big pix guidelines to investing how much in each type of asset classes) equities,
i'd then learn about methodologies (entries & exits) of investments, like value investing (buy during lelong / cheap sale) and/or value cost averaging, dollar cost averaging, trend (mid to long term), etc.
Once all the above knowned, planned Asset Allocation & execution (entries & exits reasonings/logic/triggers), i'd execute the plan, track it and tweak the plan as necessary.
Whew... just a thought
Wow, actually is I respect you because I have no idea what you're talking about. I dare not say we are savvy but lucky in some sense.
Mind sharing what is asset allocation? KLSE REITs? How do you be a landlord without the headache of being a landlord? I dont get what you mean at all!
My aunt manages our stock. It's been that way since we were in school but we hardly touch that money, we are traditional and believe money just roll in money. Have not had the need to withdraw our winnings (got losing also!) from the stock exchange.
Where can I learn more about precious metal trading? KLSE REITs? Big pix guidelines to investing? Entries & exits? Sorry, I'm lost.
Feb 27 2012, 01:20 AM
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