Hi guys,
Simply put, I have 200k cash that has been rotting in my posbkids account for awhile now - what are the best options available to me, given that I do not need liquidity, prefer dividend payouts, and am NOT very risk adverse?
Just to be sure - you're not risk averse, so you're comfortable with taking some risk? And you don't need liquidity - I'm assuming you mean you won't need the cash for five years or more - so you can handle taking some drawdowns?
In your case, you can invest it into a reasonably aggressive mix of ETFs. And if you've got a high tolerance for risk, then you can skew it international, rather than staying onshore.
Here (
edit: changed some to take into account platopus's high-div-yield suggestions)
* 30% STI ETF (yields 2.6% plus capital growth)
* 20% VUSD (the UK-listed SPY equivalent) (yields 1.6% plus capital growth)
* 20% VHYD (the UK-listed Vanguard high-div ETF) (yields 3.65% plus capital growth)
* 20% QL2 (the SG-listed Asia Credit Bond ETF, yields 4.75%)
* 10% QL3 (the SG-listed Asia High Yield Bond ETF, yields about 7%)
Normally someone who labels themselves as "risk-tolerant" would want to skew toward stocks rather than bonds, but because you mentioned you wanted yield I've nudged you that way; and I've replaced the money I'd usually allocate to A35 with the higher-yielding QL2 and QL3. Be warned that these are higher risk as well, and they're not appropriate for smaller investors.
I figure your total yield is going to be something like 3.5%, which is pretty good in a zero-interest-rate world, and you should get plenty of capital growth from the stock ETFs as well.
As for which broker - you'll definitely want to use Interactive Brokers for the two UK-listed ones. For the SG-listed ones, you'll probably have to use Stanchart, because IB doesn't let you buy Singaporean stocks if your address is in Singapore. (If you've got an overseas mailing address you can use, you can sign up to IBKR with that, and that'll let you trade Singaporean stocks as well at IBKR's rock-bottom brokerage rates.)