So here is my question to all the 'sifus' and gurus. What or rather How should I invest RM100k which has been accumulated over the years?

Some info:
1. RM100k in bank, normal savings account.
2. Monthly income expected to be around RM2.5K a month.
3. Monthly expenditure is expectd to be RM2.3k to 2.4k.
4. Expected savings from monthly expenditure will be low.
5. Only SPM qualification so far.
6. Planning to start family soon as well. 1 year.

How can I make this RM100k make me more money than I can earn so that can save more?

Options being considered:
1. Fixed deposit long and short term.
2. Real estate investment.
3. Unit trust.
4. Stock market speculation.
5. Start business as my own boss.
6. Invest in business as a partner.
7. Invest in education and get better job.

What do you ladies and gentleman think?

This post has been edited by billycomeback: Feb 13 2007, 03:11 AM

1. D/P for a condo around Mont Kiara / Sri Hartamas.. very good rental and appreciation value.

2. Invest 50k for good stock. FD 50k.

Hope This Help

Keep ur money in FD for now.

Wait for the economy to go bad.......then you can buy stocks cheaply then.

Keep it for 5-10 years. Then watch you money triple

FD 50k... and try ur luck in unit trust with the remaining 50k... i asked around and there seem to be a few ok UT around. depending on your choice, you can either go for the fast gain-substantial risk types or the slower gain-minimal risk types.

hope that helps...

Blow it on sex, drugs and alcohol. Waste the rest.

Nah, check out the banks and mutual funds for their offers. Check around amongst your friends to see if any of them require capital for their ideas. Economics-wise, I would very much like you to continue studying, because of supply-side benefits to the country, but it depends on your preferences, how much it will cost in terms of real cost and opportunity costs (will you have to quit your job?) and what you plan to do when you get out and the market for that job.

For example, dentists are often overlooked as a career opportunity. Vets, too. And everyone wants an accountant and a good tax lawyer. Hard part is the last two are very hard to master. Give me some numbers and I'll crunch it for you, no charge!

As a young man, you should actively seek out money now beecause you're still able to work hard. Savings and investing, though important, is even more important when you are older and less active. Having a large capital at that time is essential. So work hard while you still can.

Hope that helps!

This post has been edited by empyreal: Feb 13 2007, 08:31 AM

1. RM100K in savings account?! Should at least deposit in FD and get higher interest.

2. Based on what you said, your income = your expenditure, you won't be able to make monthly repayments for the loan in the even your property is not rented out. Please also note that investing in property have risk too i.e. tenant run away living you utilities bills and outstanding rental, tenant use your property for illegal activities, etc. etc.

3. Unit trust investment is ok but depends on timing.

4. You can try stock market speculation if you are willing to take risk. Make lots of money or vice-versa.

5. Start your own business and see it grow and grow and grow. If you are sure on the business prospect and is focus on your work, should be ok.

6. You trust your partner?

7. Education is one of the things that people cannot take away from you. You can always go get a Education loan and still invest your RM100K.

Yah this sounds like a low risk investment. Invest in high paying dividen stocks like PB, Panamy, Shell, etc etc.

<<6. Planning to start family soon as well. 1 year.>>

With this coming, I doubt you have much room to take risk. My advice:

1) Put 6 month to one year expense into one year FD -> 15K to 30K

2) If you are a bumi, buy ASB. If you are not, that option is out.

3) Avoid unit trust. The commission and loading is high in Malaysia. You need at least 5 years for any hope to break even. You are starting a family. So, you will need money soon.

4) Are you renting or you own a house??

5) Do you have car loan??

6) Keep the 70K in FD. Wait for stock market and housing market to crash. Buy good dividend paying blue chip stock when the market crash.

7) Start looking around where do you want to live. Wait for people to go broke and buy a house to live.

Dreamer

agree with dreamer 100%
wait for the market to crash right at your face telling you "INVEST!!!"

the 'crash' may be a 8-10 year cycle, too long for a 'wait' . I would say wait for a correction on the stock price b4 invest.

1) If you believe the "crash" is 8-10 years cycle, we are close to one.

2) Anyhow, my belief is we are close to one now.

Dreamer

U ll never know. Even if it would crash this year, the down trends would take at least 1/2 year. Then the market would go side way or further down trend for a 1-2 years before slowly climbing up at a turtle pace. The whole process may take another 5-8 years. Most ppl already give up by then, so its not practical to hold it for so long.

Thanks for the replies guys, really appreciate it.

The 100k saved was a result of working my ass off overseas. Now that I'm planning to come back to Malaysia for good, I doubt I can get any high paying jobs for now, hence the Rm2.5k expected salary. All my expenses includes car loan and the rent for the home I'm staying in. I'm not a Bumi so ASB is out I guess.

The thought of studying again to get a Diploma or a Degree was to improve my job prospect in the future, so I don't get stuck with a low income. Looking at engineering courses or in IT since I have experience and interest in both. (worked in manufacturing and love computers) Education is still expensive in Malaysia in my opinion but I guess it is offset in the future. By the way, I'm already 27 this year so I'm not getting younger . The problem with education is, I would either have to do it part time while I work or do those distance learning courses. Not too sure if the distance learning degrees are good enough though.

"Blow it on sex, drugs and alcohol. Waste the rest." Hehehe, been there done that and got the t-shirt.

The real-estate investment idea, I got it from this forum, but I have no idea whatsoever about it. Never owned my own house before, so it is in the pipeline to get a house for my family. Is it a good idea? Or should I just continue renting?

Regarding business, I have a friend who runs a cafe business, his business is good but it is not his business, just running it with the owners being sleeper investors. So he always thought of coming out on his own, I thought if I had the money and no idea how to use it, I would help him with some capital and I get some of the profits while he runs it. Still nothing planned yet, just an idea when he told me of his intentions.

So the general advice I'm getting is to put the bulk of my savings in a FD account to earn interest while I wait for opportunities to arise. My partner has been talking about investing in unit trust as a future savings for our family, but I haven't really checked out anything so far. This forum seem to like Public Mutual, I guess that is what I'll check first. Does it really take up to 5 years to see a good margin of profit? Wouldn't the stock market crash cause it to come down?

Hmmm, I always try to avoid stock markets but the promise of very good returns always tempt me to try at least once to see it for myself. Still have no guts to put money in it though. So is the stock market gonna crash anytime soon or is it the low season already?

Thanks again for all the helpful responses. I will take your advice and put some of my savings in a FD account for now and try to figure what I want to do with the rest. Keep your ideas coming though, as I think there are others as well with some savings to use but don't know how. Funny I always thought when I had money, everything would be easier, now that I have some I get even more confused than before.

Singh_Kalan,

1) Your goal is to sell stock to make money. So, you cannot hold stock for long.

2) My goal is to buy stock with high dividend yield. So, I can hold forever. I get pay every year without selling the stock.

Dreamer

I won't recommend this. Not if you don't have at least 2 years experience in stock speculation.

yup, most newcomer will go down the drain. or swallow by big fish

if u dare to take risk,go franchise some biz in malaysia to do,the best thing to franchise is F&B food and baverage

if u dont 1 to go out malaysia u always can find biz in malaysia,like 1901 hotdog, its a good biz but u need a very good location
,or,if u have any good idea in mind,like u have a special recipe, just open n shop selling that,
since u said u only have spm qualification only.

in malaysia F&B is a good biz,
so think of it

---

Added on February 13, 2007, 10:46 amyup stock speculation not recomended.unless u have a good remiser,sorce
if u just buy and sell is either u lose all ur money or gain money.

the best is buy blue chip and keep

but no experiance not recomended.do biz better

This post has been edited by kelvio: Feb 13 2007, 10:46 AM

1) Google "Rent versus Buy". You ARE NOT doing real estate investment. You are buying a house to live. So, you want to buy a house at a price that it does not cost more than your rent.

2) The best investment that you can do now is DO NOT TAKE A 9 YEARS CAR LOAN.

Dreamer

hm...ya I agree wif dreamer. Wait for market to crash(whenever that is) and buy good paying dividen blue chip shares....
Put in fd as of now is the best. I think mutual funds are quite risky, better buy shares.....and if u do go into it....might as well take the most risky one, its either u hit it or lose it....
buying property...nah....if u cant rent out, u still gotto pay the loan, pay the maintenance, pay the utilities, pay this pay that......can cause quite a headache. Wanna sell it also can cause another headache unless u got a dem freaking good deal la....but its not as easy as in the books...hehe.
As for getting a degree.......hmm.....maybe can do parttime...

Base on your info of ur income, i found that how long u have been saved for ur Rm100K.Anyway well done bro.
For me i always invest to FD which gives me security. If let say 100K with FD4.2% will annually get RM4200 richer..its such a big amount & gurrastee amount.
About investing in businness, i will not recommended as RM100K is not sufficent to start a busineess.For ROI for a business takes at least 3-5 years.
BEside that i would say invest some on insurance saving.
And also invest on your upgrade education. HOw abt a say for a diploma first,from here definite u will getter paid after graduate.And a very goood recommendation is to at least invest education till a degree holder which there will be your earning more path. No risk & no waste by the end of the day.

beside that don't involve in:-

Credit Card
Personal Loan

need a real good self discipline to manage this two, if not.... thru my own experiences and still living with it....