Intelligent Investment Plan (if one has the extra cash to stash away)

[Serigala]

Calling All Investment Gurus

As re. states, during these times... what would be your best bet in investing the extras (short term plan)?
Presently, I have some extras stashed under my pillow - handy for kids college use next year.
But I am not so well-equipped with the various investment plans in the market.

If only (a) kind-hearted soul(s) will show me the way......

Many many thanks!

[ng]

I would suggest you to invest in a small apartment in a good location for long term investment.

The stock market is going to go down in the future so that is not a good investment.

[Rhiga]

I think it is dangerous to say in a public forum you have extras to stash, and more dangerous to say you are not good in investing the extras…

Even though you are a serigala, there are plenty of hyenas out there looking for pray !!!

You mentioned you have a college-going kid next year, I guess you are close to 50 or above 50 in age and hence, anything aggressive is not suitable for you..

Let’s talk about number about the extras…

1. If it is less than 300k, than forget about it. There is not much tangible difference you can gain since your investment alternative is limited by the quantum and by the age.

2. If the extra is multiples of 300k . Then, a safer bait is to solicit advice from those so-called premier banking/priority banking of the foreign banks. However, please take note that they are more keen to promote their bank products to earn commission from you, or to meet target for a year end Europe incentive trip..!! Imo, something that can guarantee a fixed return should be good but the rate of return is normally low or just a little bit better than FD.

3. The next one is private banking. Normally, those fellas in private banking will look for you instead of you looking for them. Not many of the foreign banks have REAL private banking in residential areas and USJ/SJ is certainly not in their radar. In the eyes of these private bankers, USJ/SJ people are still a bunch of poor folks, neither here nor there. The nearest one will be the HSBC in Damansara Heights and the entry level is USD 1milion.

Seriously and honestly, I think you have asked the wrong question in this community forum. Those Investment gurus won’t be here and definitely no time to be here..

Cheers

[ng]

The other alternative risk free investment (in this troubled times other than property) is to invest in Golden Savers Fixed deposit (above 50 years old) which give slightly better rate than normal FD.

[Jennylim]

Just talking on experienxe, if you are conservatives these are what you can do;
1. premier banking/priority banking as mentioned by Rhiga - they usually have products that give you better return than FD, from short term to long term.
2. Dividend fund – stable ones give you 6% to 8% return plus capital gain.
3. Stable bond fund – usually gives 5% return plus capital gain.
4. Good shares – give you 6% to 9% return plus capital gain.
What is good or stable? You need to look at their records, their debts, assets, business forecast, pass dividend records, who are in the board, etc.
If you have no holding power, just go for item 1. If you are aggressive investor, go for anything but do your research first before you go in.

[cml]

I think that whatever you do, it would be wise to stay away from the multi level gold investment companies. I think those are ponzi schemes.

[kuma]

It is commendable that you have worked hard and set aside funds for your children's education and future....the last thing that you or anyone would want if for this valuable nest to 'vanish in a niff',...... for it not the 'money lost' that would be worrisome, wealth can always be earned back....it would be the effect it would have on your children's future as everything will now have to be delayed, unless of course, you have other backup resources lined up just in case.

Many a person....after having saved for their children's education and see this huge pile of money, then think 'why not let this money work for me'....after all, they say that it 'takes money to make money'....and if I do it right, then the investment will pay off my children's education and I'll still have nest all for myself .....Yes, this has worked for many before,....may still work, however, at these current times, you just might be taking a risk too far

Having said that, it would be ideal to 'thread wisely' with that money.

Rhiga has spoken wisely....the last place you want to seek help from is a Forum filled with anonymous people .....gather as much opinions as you want, but ultimately.....here's what Buddha said:

"Believe Nothing,
No Matter Where You Have Read It,
Or Who Has Said It,
Not Even If I Had Said It,
Unless It Agrees With Your Own Reasoning And Common Sense"......Budda

p/s
As pointed out by Rhiga.....the last thing you would want to do is to walk into a Bank, or Investment Firm/Trader and announce that you have this 'nest' and seek help

[zinglicious]

When you announced that you have monies stacked in the pillow which is estimated as Rm200,000 per sack, you would be attracting wolves in forum, vultures in the bamk and pirahana from the streets.

From the Mean Old Ex Chef truned Double Agent if he is sleeping on the pillow of cash, the best investment you can make is on your own with due diligence.

The banks? - Those investment consultants with hidden agenda with commisions and hidden fears of not hitting the sales target would be surely eyeing your pillow by painting beautiful dreams of wealth.

In a recent Chinese movie, there is this bank officer trying to hit the target had "advise" customers to place in special mutual funds to keep her job.

In the past, I had a retired American friend where he paid hefty investment consultation fee by Wells Fargo bank to buy Home Depot, Citibank and Microsoft shares which I told him my service would only cost him USD7 per trade over Scotttrade and could advise him with just a treat of Cheese burger which cost him USD5.50.

What evr it is - always ask your financial advisors if they are sleeping on thier own monies of pillow, would they sleep on it with thier investment advice and ask for 10 good reasons why.

If the answers given is not satisfactory, wake up from those dreamy scheme especially when it is too early to dream of Cepat Kaya.

[ng]

Just talking on experienxe, if you are conservatives these are what you can do;
1. premier banking/priority banking as mentioned by Rhiga - they usually have products that give you better return than FD, from short term to long term.
2. Dividend fund – stable ones give you 6% to 8% return plus capital gain.
3. Stable bond fund – usually gives 5% return plus capital gain.
4. Good shares – give you 6% to 9% return plus capital gain.
What is good or stable? You need to look at their records, their debts, assets, business forecast, pass dividend records, who are in the board, etc.
If you have no holding power, just go for item 1. If you are aggressive investor, go for anything but do your research first before you go in.

3. where do buy bonds ? Is the capital guaranteed ?

[Jennylim]

U can get bonds from fund management companies or banks. Capital guaranteed? Depends! Some yes, some no, you have to read the fine lines. Anyway,when it is guarantee - there is still something not guarantee - that the selling antity will not go bankrupt! Do some research and you will find the right product. I normally compare products and read the prospectors in details - I don't trust investment advisors - they are trained salesmen. They knew what to tell u what not to tell.

[patrick]

Calling All Investment Gurus

As re. states, during these times... what would be your best bet in investing the extras (short term plan)?
Presently, I have some extras stashed under my pillow - handy for kids college use next year.
But I am not so well-equipped with the various investment plans in the market.

If only (a) kind-hearted soul(s) will show me the way......

Many many thanks!

1. Have you decided where your kids going for college?
2. I dont think property should be your investment consideration as you have stated clearly that yur investment is short term and for your kids college next year.
3. Your investment MUST have short term horizon with easy liquidity as yur kids education cannot be compromised.

Rgds.

[ivanhow]

Consider this: Based on Mudharabah (profit-sharing principles) contract where the customer act as the provider of fund and the Bank acts as the entrepreneur - for your golden years with golden returns... the concept looks good!

[ivanhow]

If you had invested USD 50K in certain good stocks, like this one three yrs ago, you cud have raked in USD50K by now, and is still on the uptrend. And if you've invested in the right stock, it can even give you a return of 5 times your capital. The returns are much better than in real estate properties, and.. with ample liquidity... However, if you have invested in the wrong stocks, it cud have yielded a negative return or even worse. The returns are yours as much as the risk is, it's all abt timing and opportunity cost...

Bottom line: There are risks associated with any investment. So, do your own due diligence before you plunge into any investment. There is no such thing as a safe investment, even bonds can be risky!

[IanQ]

Please reconsider what you are looking for. Your holding period is only 1 year max. You should not even be looking for investment plans at all. You should be looking at maximizing the efficiency of your money, not returns. Please pay attention to the difference. At most find the best yielding FDs or Principal Protected Products or very short term Bond funds. Nothing else.

You don’t have holding power. You don’t have time working on your favor. And you are gambling the biggest best investment you could ever make in your life: your children’s education!

But if you feel you need to do something with your fund for the next 1 year else you cannot sleep, then take max 20% of your stash to invest. And if your kids’ destination are overseas, consider this product from banks: Dual Currency Investments and pair to the currency where your kids’ will have use the cash.

I used to work in this actively for a living, both from buy side and sell side banking, creating products for clients to invest in. Nowadays I just let the sales channel decide. So, I have no hidden agenda.
But sometimes I wonder. We are willing to pay big bucks for other profession services like medical or law, but we tend to look for quick and free kill when it comes to financial issues.

No matter what, you have to take ownership of your decision.

[zinglicious]

Currency play is an investment? I thought it is a mere specualtion as it has no dividend payout?

I kenot denied shares to currency play has its success stories. Heck, I even might do better than Warren Buffet in short term play by picking a stock that costs USD1.70 to 70cents with due diligence where my payout of multi payout. I sold at USD13.80 in just over a year. From a mere USD 5,000, I had upograded myself to about USD 350,000 trading margin at my disposal in another year. But I was stuck like a glue to the trading from 9am to 4pm, 5 days a week. nicks at the yahoo.com under datotantantan has quite a following with fellow investors. ( those guys didnt know that I was just a cook stirring up some cooking stories. )

But what happened earlier in my life as young as 21 year old , I lost all in it by investing both ways - currency play in NZ stock market. I hit all the doubles until the whole market in NZ crashes in within 1 year! All went Kaput.

Anyway, one of the best investment is child education. Stay on course with that as it would pay good dividend payout and see the size of investment growth. Dont try to outsmart the market unless you are prepared to take risk, really good and work really hard to keep tabs on it. There is no easy monies as in quickies.