how to save 200k in 9 years?

[Shiny Things]

anywhere to place a sum of 10mio for 6 - 12 months? current sweep account gives 1%pa but hoping to find one higher.

Depends: do you need liquidity? You might be able to get a bit of a yield pickup out of bank pref shares if you're prepared to give up some liquidity.

 

[w1rbelw1nd]

hmm the manulife singapore fund wise I only started last november 2013.

nikko am etf wise in march only then i had issues trying to get the scb trading account.

pay till a certain age cause i think by the time i reach 50 and apply for a term or even in face do a term insurance at age 40 wouldn't the premium be alot higher than what I paid at age 30 and wonder if the insurance company will even want to insure you or not. Being a extremely pessimistic person who believes city states like Singapore die or go into decline after 50 years I wonder if I will even be employed at age 50 even let alone keep paying for insurance at that age.

I do have an keratoconus issue with my left eye which I had an operation for age age 25 (I still see a bit of double vision in the lower left corner of my eye). I am age 31 now and the dumb manulife does not want to cover me for blindness, according to my agent friend she had to fight kinda hard for them to even cover me at all.

I do have an ntuc one i pay 118 for every year that I made before the condition but they only cover up to 25k in the event of blindness.

And knowing all insurance companies they always ******** around when you are trying to make claims or take a long time to process the claims. Wonder by age 50 whether can even get the money back or not haha. Life is unpredictable maybe by age 49 pass away how?

Well, I don't have the numbers here, but chopra did some analysis and showed that term insurance (pay as you get covered) is way cheaper than pay for future coverage.

If you are buying the same term policy from now on, they should still be covering you. Why shouldn't they since they do cater for a more elderly client base?

Anyway, you should be saving a certain sum of money for future term insurance coverage if you think you cannot afford term insurance then. Paying a more exorbitant fee now so that you won't spend the insurance money away once future doesnt make sense to me....

Also, do you realise that when you are buying whole life, you are buying coverage for e whole insured period, but if you buy term you are only covering for the month/year? Assuming you die/claim early, which one is cheaper? Hahaha

 

[Shiny Things]

anywhere to place a sum of 10mio for 6 - 12 months? current sweep account gives 1%pa but hoping to find one higher.

So, followup: the only thing that comes to mind is the OCC 3.93% prefs with a call date in March 2015. They're trading 101, so that's a fairly chunky yield to call - north of 3% annualised if my numbers are right - but I think you're going to have trouble getting liquidity in your size. Maybe call your broker and ask them if they'll make you a price in $10mio?

Best case scenario, you get called in March and make 3%+ annualised; worst case scenario, you don't get called (not likely) and you're long OCBC paper paying SOR+185, which is not the worst thing in the world to be long.

There're a lot more options if this is USD cash, but if it's SGD... there's a lot of liquidity out there and not a lot of good homes for it.

 

[Shiny Things]

why would they call when SOR+185bp is lower than 3.93?

3.93's not the key number though. If they don't call the pref, it basically turns into a loan that rolls over every quarter - and OCBC can get quarterly funding a hell of a lot cheaper than SOR+185.

 

[simon_84]

If you are buying the same term policy from now on, they should still be covering you. Why shouldn't they since they do cater for a more elderly client base?

term has the most coverage than over life insurance.
more suitable for ppl working with limited budget.
in the years if you don't claim especially for those under group term, there might also be cash back feature.

as sg is moving towards greying population, a 99-year term insurance will slowly become more popular.
else look for those term insurance with the option to convert to life insurance upon 65.
do note that every 5 years, the premium for term insurance will increase with age.

https://www.aviva.com.sg/life-and-health/for-individuals/term-life.html

 

[Shiny Things]

as sg is moving towards greying population, a 99-year term insurance will slowly become more popular.
else look for those term insurance with the option to convert to life insurance upon 65.
do note that every 5 years, the premium for term insurance will increase with age.

Or you could just buy vanilla term until age 65, and then fund your retirement with all the money you've saved by not pissing away cash on unnecessary life insurance.

 

[Mecisteus]

term has the most coverage than over life insurance.
more suitable for ppl working with limited coverage.
in the years if you don't claim especially for those under group term, there might also be cash back feature.

just get a plain vanilla term insurance. those cashbacks type are already priced in at higher monthly premiums. if not higher, how do you think they can generate cashbacks? same concept like a WL. you are paying higher premiums for the cash to be accumulated and given back to policyholders on maturity.

 

[wahkao3]

And wahkao, I asked you politely in private to stop commenting on things you don't know much about. You didn't listen, so now I'm going to ask you again in public, and I'm not going to be so polite.

You add no value to most of the threads you comment on. You don't seem to understand a lot of what we talk about on here, but you're not humble enough to ask us to explain.

And you keep on talking about your TA + FA strategy, or about "low risk high return" shares, without giving us any sort of enlightenment about how your strategy works or how to find these "low risk high return" shares. This is worse than useless: it makes you sound like you don't have any actual method and you're just throwing around these terms to make yourself sound important.

This is a friendly warning: you're making yourself sound like a poser. You should read more and comment less.

wa lao u so fierce sia
u make me jin scared
can relax a bit a not?

 

[wahkao3]

There is no such thing as "low risk high return" shares - or if there are, normal people like Leona don't have the time or the inclination to hunt through hundreds of shares to find them.

have.

I show u where.

example when market crash, all the prices are driven so low that your risk is very low.

when they recover you get very high returns.

There's your low risk high return. Dont even need to hunt. Just need to be patient.

 

[Mr. Wood]

have.

I show u where.

example when market crash, all the prices are driven so low that your risk is very low.

when they recover you get very high returns.

There's your low risk high return. Dont even need to hunt. Just need to be patient.

When will market crash? A lot investors I speak to say market will not crash, at most dip a bit. Even if crash, ur money will also be worthless, banks close shop and it will take years to get back to present level.

 

[bullsback]

have.

I show u where.

example when market crash, all the prices are driven so low that your risk is very low.

when they recover you get very high returns.

There's your low risk high return. Dont even need to hunt. Just need to be patient.

best is still blue chips, its safest, unless one know what one is doing...

 

[wahkao3]

When will market crash? A lot investors I speak to say market will not crash, at most dip a bit. Even if crash, ur money will also be worthless, banks close shop and it will take years to get back to present level.

it will come when it peaks
be patient lah

 

[bullsback]

When will market crash? A lot investors I speak to say market will not crash, at most dip a bit. Even if crash, ur money will also be worthless, banks close shop and it will take years to get back to present level.

1930s usa great depression...

 

[wahkao3]

best is still blue chips, its safest, unless one know what one is doing...

During normal market, blue chips are low return low risk
you are right that they are safe (low risk), but they are also low return because you pay a premium for the safety.

What we are looking for are high return, low risk opportunities.



why u go and edit your post? Write so many interesting things all disappear liao

 

[bullsback]

During normal market, blue chips are low return low risk
you are right that they are safe (low risk), but they are also low return because you pay a premium for the safety.

What we are looking for are high return, low risk opportunities.



why u go and edit your post? Write so many interesting things all disappear liao

sometimes i think pple might be offended...so i delete away..

 

[bullsback]

So I'm going to give you the same answer I give everyone, because it's good advice and it suits your situation: put most of your money into G3B (the mini-size Straits Times index tracker fund) and a little bit - say your-age-minus-ten percent - into A35 (the ABF bond index fund).

These are easy and simple; they both invest in a wide portfolio of shares and bonds, so you don't need to think about picking stocks; and because they can't go to zero, you can just buy them and sit on them without thinking about them.

You could even flog that Manulife Singapore fund you've got, and put the money into G3B as well. It'll give you basically the same returns, because it's the same stocks underneath, but you'll pay a lot less in fees - probably a hundred bucks a year less. That's a nice birthday dinner every year.

And this:

is just terrible advice.

There is no such thing as "low risk high return" shares - or if there are, normal people like Leona don't have the time or the inclination to hunt through hundreds of shares to find them.

Blue chips are an excellent investment for almost all investors.

And wahkao, I asked you politely in private to stop commenting on things you don't know much about. You didn't listen, so now I'm going to ask you again in public, and I'm not going to be so polite.

You add no value to most of the threads you comment on. You don't seem to understand a lot of what we talk about on here, but you're not humble enough to ask us to explain.

And you keep on talking about your TA + FA strategy, or about "low risk high return" shares, without giving us any sort of enlightenment about how your strategy works or how to find these "low risk high return" shares. This is worse than useless: it makes you sound like you don't have any actual method and you're just throwing around these terms to make yourself sound important.

This is a friendly warning: you're making yourself sound like a poser. You should read more and comment less.

i think index fund is the best general advise to give to the man on the street. Its even endorsed by Warren buffet as an advise to his descendants after his passing.

upz for more views...

 

[ecyoj86]

and back to my question...otr at least 140 k in 10 years?

 

[icicic]

and back to my question...otr at least 140 k in 10 years?

14k a year is ~1.2k a month. Very doable and for some just using cpf gets you there

 

[cscs3]

it will come when it peaks
be patient lah

Yes, I never believe market can remain strong all the way. There will be a point that investor take the cash out. Or situation like war !

 

[naro]

must spread sheet until so tedious meh? Excel with all the financial functions can solve these sort qs easily.
Eg
=RATE(9*12,500,0,-200000)*12 = 25.1%
Means saving at 500/mth at a rate of 25.1% per annum compounded monthly will give you 200000 at the end of 9 years. So you should decide if you can earn 25.1% interest pa.

=FV(0.07/12,9*12,1290,0) = 193 318
means savings at 1290/mth at a rate of 7% per annum compounded monthly will give you 193 318 at the end of 9 years.

Financial modelling wise, best to show steps so that you can troubleshoot easily and do rely on too much functions.