View Full Version : Where to part 1mio cash temporary?
Say I got 1 mio cash and I dont need it till 1 yr later. Where is best place to park this money just for 1 year so as to earn some interest?
We prefer safe investment.
Dont 'kar cheow' and say park at my pocket or my house hor?
Split into various 'safe' local currency investments.
1) Fixed D
2) Pref shares eg bank issued Pref shares. Skip those issued by other corps.
3) REITS - only the best/biggest...CMT, FCT, Ascendas. Skip the small caps <1bil.
4) High yield stocks eg SPH/Singtel/M1
5) Govt bonds
Chow-chow you can get a blended of say 3-4%.
Not enough?? Then have to take more risk within these or go for a riskier class of asset.
Buy gold bar and put under pillow enjoy every night.
But if you really meant what you wrote in subject line, visit MBS casino can easily parT with the money...
Put 47.5% each on Red and Black and the remaining 5% on "0"...it'll feel like inflation at every spin!! :D
Can simulate inflation rate after each spin ...5%/3% or even 1%.
Then see how many spins/years your money can last...
Buy gold bar and put under pillow enjoy every night.
But if you really meant what you wrote in subject line, visit MBS casino can easily parT with the money...
Split into various 'safe' local currency investments.
1) Fixed D
2) Pref shares eg bank issued Pref shares. Skip those issued by other corps.
3) REITS - only the best/biggest...CMT, FCT, Ascendas. Skip the small caps <1bil.
4) High yield stocks eg SPH/Singtel/M1
5) Govt bonds
Chow-chow you can get a blended of say 3-4%.
Not enough?? Then have to take more risk within these or go for a riskier class of asset.
Fixed D like boh wah leh...
How about this? Would MAS remove the Equity/Mortgage Loan anythime soon?
You wan safe safe wor...watch out for FD promo...can get 1.1x% from global banks. If you pass on this/Govt bond then your blended yield will improve. But the rest depends on your entry price...you bad luck, all your yield eat by someone else, you like Forest Gump then ho say liao...eat more.
Fixed D like boh wah leh...
How about this? Would MAS remove the Equity/Mortgage Loan anythime soon?
Say I got 1 mio cash and I dont need it till 1 yr later. Where is best place to park this money just for 1 year so as to earn some interest?
We prefer safe investment.
Dont 'kar cheow' and say park at my pocket or my house hor?
Given just a one year time frame, it may well be better just to put all in FD for 1% With fixed income like Preference Share or REIT one may get say 5%. The difference with FD is only about 4% which is in absolute value is only $40,000.
Buying preference share and REIT are not cheap now. Do you want to be in the position when you need the cash and find the value of your share below what you buy now in one year time? Bonds is out because it is on a longer term. Just my thoughts!
Given just a one year time frame, it may well be better just to put all in FD for 1% With fixed income like Preference Share or REIT one may get say 5%. The difference with FD is only about 4% which is in absolute value is only $40,000.
Buying preference share and REIT are not cheap now. Do you want to be in the position when you need the cash and find the value of your share below what you buy now in one year time? Bonds is out because it is on a longer term. Just my thoughts!
The reason why 1 year is because this sum of money is only needed at the later part. Which bank givs FD 1%?
CIMB give 0.8% for saving account :cheers5:
Not much, but better than nothing...
Decksurgeon
21-05-12, 18:56
stanchart i think 1.2% on new savings account
how old is TS?
so fast earn your first million
Allthepies
21-05-12, 20:00
hoot 1million into stocks, the safest invesment u can find now.one year later become 2mil remember to give me 1% as tips.
applied to be a licensed money lender
The reason why 1 year is because this sum of money is only needed at the later part. Which bank givs FD 1%?
Put some into REIT counters eg fraser comm trust yearly return of 7-8 %..but need to accumulate during weak time..that will defray the down time and potential appreciation. Do some rseach on these whereby disposIng some of their holding.. They return high return to unit share holder ...
CondoInterested
21-05-12, 21:46
Where to part 1mio cash temporary?
Say I got 1 mio cash and I dont need it till 1 yr later. Where is best place to park this money just for 1 year so as to earn some interest?
We prefer safe investment.
Dont 'kar cheow' and say park at my pocket or my house hor?
Please decide you wanna part in you subject title or park in your description.
Won't 'kar cheow' if it is park, sounds like car park or garden park.
If part, please give it to me. :D
I was so happy after reading your subject title and so sad after reading your detail description.
Say I got 1 mio cash and I dont need it till 1 yr later. Where is best place to park this money just for 1 year so as to earn some interest?
We prefer safe investment.
Dont 'kar cheow' and say park at my pocket or my house hor?
buy 100 lots of kep corp 4% returns.
my broker say one
Please decide you wanna part in you subject title or park in your description.
Won't 'kar cheow' if it is park, sounds like car park or garden park.
If part, please give it to me. :D
I was so happy after reading your subject title and so sad after reading your detail description.
hahah sorry. my mistake nvr check spelling.
ok lah, better put with CIMB or Std Chartered then.
hahah sorry. my mistake nvr check spelling.
ok lah, better put with CIMB or Std Chartered then.
cimb 0.8% give u freedom to take out the cash any time, else opt for 1% for 1yr FD :)
i recently also open a 0.8% acct :D
But current inflation will consume it. :o
cimb 0.8% give u freedom to take out the cash any time, else opt for 1% for 1yr FD :)
i recently also open a 0.8% acct :D
But current inflation will consume it. :o
no choice leh, seem that risk free options all have very low returns (below inflation rate)...
any risk free option that can bid inflation ? :confused:
Regulators
22-05-12, 13:19
buy plain vanilla bonds that are maturing in one year's time, company guarantee to buy back at par so you have nothing to lose and can collect biannual coupon of 3-4%. It is a no brainer safe haven to park your money. Only downside with very minimal risk is company goes bankrupt, but govt backed companies like rbs very hard to go bankrupt in one year lah.
buy plain vanilla bonds that are maturing in one year's time, company guarantee to buy back at par so you have nothing to lose and can collect biannual coupon of 3-4%. It is a no brainer safe haven to park your money. Only downside with very minimal risk is company goes bankrupt, but govt backed companies like rbs very hard to go bankrupt in one year lah.
The cost of buying such bonds is very high. You probably need to pay the same amount of the coupon payment you would receive and the sum usually does not add up. You hardly can find arbitrage profit especially in the bond market.
Regulators
22-05-12, 14:06
The spread bankers and broking houses take is at most 0.5%, what is that compared to the 4+% you gain? Bonds like capitaland is trading below par with guaranteed redemption at par in 2017, attractive for people who want to park money in bonds.
The cost of buying such bonds is very high. You probably need to pay the same amount of the coupon payment you would receive and the sum usually does not add up. You hardly can find arbitrage profit especially in the bond market.
How much is it now?
The spread bankers and broking houses take is at most 0.5%, what is that compared to the 4+% you gain? Bonds like capitaland is trading below par with guaranteed redemption at par in 2017, attractive for people who want to park money in bonds.
The spread bankers and broking houses take is at most 0.5%, what is that compared to the 4+% you gain? Bonds like capitaland is trading below par with guaranteed redemption at par in 2017, attractive for people who want to park money in bonds.
Our friend is taking about 1 yr period. Buy and sell will cost you at least 1% so you actually make about 3% for $1m vs 1% with FD. Is it worth the risk to buy the bond for such short period of time? You also risk not being able to sell at the right price when you need your money one year later. The bond market is not very liquid. Also, should interest rate increases, bond prices will fall even more.
Regulators
22-05-12, 15:39
last i heard capitaland was trading at 96cents.
How much is it now?
Regulators
22-05-12, 15:41
If talking about $1 million, the extra 1-2% more is $10k - 20k extra cash. Who is going to give him that if he don't take a bit of risk?
Our friend is taking about 1 yr period. Buy and sell will cost you at least 1% so you actually make about 3% for $1m vs 1% with FD. Is it worth the risk to buy the bond for such short period of time? You also risk not being able to sell at the right price when you need your money one year later. The bond market is not very liquid. Also, should interest rate increases, bond prices will fall even more.
If talking about $1 million, the extra 1-2% more is $10k - 20k extra cash. Who is going to give him that if he don't take a bit of risk?
The point is whether taking the risk for just $20K more with $1m in hand is like good money chasing bad money.
i say buy 1mil of Genneva gold and let go after 3 mths..then decide if you want to risk another 3 mths. :cheers5:
bank of china sgd FD is 1.22%
can consider some of these bonds
u can leverage about 50% on top, thus make the net yield much higher.
These bonds are liquid but still OTC
Cost of funds depends on the type of currency.
I have yet to find out why Aviva is still so much under offer price, checking on their exposure to the EU.
I am still doing a lot of hard work on bonds.
Bonds ISIN
Lloyds 7.5% AU3CB0192417
Morgan Stanley 8% XS0780192802
GLP 5.5% Perpetual XS0713845195
Bank of East Asia 4.25% XS0755885778
Aviva 8.25% Perpetual XS0778476340
StanChart 5.7% XS0736418962
isin xs0347919457 Stanln 9.5% Perpetual
Great! It has gone up. Bought some last year.
last i heard capitaland was trading at 96cents.
Allthepies
23-05-12, 19:21
if really want to buy bond of company, u will rather buy the company itself better, a little bit higher risk but much more profit upside. if risk tolerance is so low, put into fixed d but max 20k each at each bank. cos tat is what the government guarantee. to earn 0.8% interest but with risk of losing all ur money if the bank went burst, i rather put the money at home.
$1M cash all dump into shares. Chances of upside higher than downside. Wat worse can it get now with the Euro crisis? In any case, you have 1 yr to dispose your shares. Once got 20% profit, can exit liao.
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