Advice needed

[Drz88]

Good morning all.

For a person with a low risk appetite for investments, how do I maximise 500k? I'm thinking of the following:

- park 350k in T Bills (6 months)
- put 150k in the UOB One account

Your advice is much appreciated. Thanks in advance.

 

[DevilPlate]

Good morning all.

For a person with a low risk appetite for investments, how do I maximise 500k? I'm thinking of the following:

- park 350k in T Bills (6 months)
- put 150k in the UOB One account

Your advice is much appreciated. Thanks in advance.

SSB 200k
UOB One 150k
The rest Tbills or similar.

 

[maumu]

Good morning all.

For a person with a low risk appetite for investments, how do I maximise 500k? I'm thinking of the following:

- park 350k in T Bills (6 months)
- put 150k in the UOB One account

Your advice is much appreciated. Thanks in advance.

merry go round the vanilla accounts every month like:
- maybank isavvy
- standard chartered eSaver
- hsbc ega

or if you can, go for
- uob one ($150k) - 3.3%
- dbs multiplier ($100k) - up to 4.1%

and finally can try
- ssb ($200k)
- t-bills (unlimited)
- endowment plans (e.g. dash pet 2 - up to 3%)
- fixed deposit (< 3%)

yeah options are getting lesser these days.

 

[henrylbh]

Good morning all.

For a person with a low risk appetite for investments, how do I maximise 500k? I'm thinking of the following:

- park 350k in T Bills (6 months)
- put 150k in the UOB One account

Your advice is much appreciated. Thanks in advance.

Spread the amount over the three local banks and hold tight for long term. The annual yield based on current price is about 5% pa.

 

[BBCWatcher]

For a person with a low risk appetite for investments....

Spread the amount over the three local banks and hold tight for long term. The annual yield based on current price is about 5% pa.

Not "low risk appetite." Not even when "hold(ing) tight for long term."

 

[limster]

Spread the amount over the three local banks and hold tight for long term. The annual yield based on current price is about 5% pa.

true, I got several elderly relatives who are of low risk appetite, they just buy the local banks and hold forever.

 

[BBCWatcher]

true, I got several elderly relatives who are of low risk appetite, they just buy the local banks and hold forever.

They might think it's low risk, but....

I happen to hold some shares of 2 of the local banks. For strange reasons.

Ask Credit Suisse shareholders how they feel. Huge bank, solid currency, much older than any of the 3 big local banks here, another small country beginning with the letter S, and...ooops!

 

[BBCWatcher]

If you want to invest in stocks in a genuinely lower risk way — much lower risk than 3 individual bank stocks, albeit still a long-term investment — then here are 3 examples of alternatives (all listed/traded on the London Stock Exchange):

• WCSS, a global stock index fund that invests in consumer staples stocks (including food stocks). This sector is the classic recession-resistant sector. People still have to eat, after all. Total expense ratio of 0.18%. Sample holdings: Costco, Coca-Cola, Unilever, Tesco, Kraft Heinz.
• MVOL, a global stock index fund that applies a "minimum volatility" screen. Total expense ratio of 0.30%.
• WFNS, a global stock index fund that invests in financial stocks. If you believe that bank stocks are safe, this one holds 231 stocks (not only 3). Total expense ratio 0.18%.

 

[henrylbh]

Any company in Sg can fold, even SIA, except the banks. The gov will do all it can to ensure the safety and health of our three local banks as the collapse will devastate the country and economy and even those who are not invested in them.

Those who held bank shares over 40 years through ups and downs are rewarded with bonus shares, rights issue, good dividend yield, excluding special dividends .... as good as properties bought in the past. Shares are easily pledged for loans in case need,at interest rate lower than dividend yield. The current dividend is as good the price some paid for the shares - much more than 100% based on historical cost. One of the companies, I know, holds millions of OCBC at average of cost just over $1 per share. I only wish that I have done what I been saying all along ... banks or companies with good dividend track records over the years.

 

[BBCWatcher]

Any company can fold in Sg except the banks. The gov will do all it can the safety and health of our three local banks as the collapse will devastate the country and economy and even those who are not invested in them.

Yes, the bank(s) may continue to trade. However, shareholders still get wiped out in that event. Quite rightly so.

Some Credit Suisse bondholders got wiped out, and CS shareholders got nearly wiped out. CS still operates as a subsidiary of UBS. All CS account holders had no issues.

 

[addict951]

Or buy Astrea bonds?
@HoGnix
@limster

 

[BBCWatcher]

Or buy Astrea bonds?

Or how about Hyflux bonds? Everyone needs water, government contracts are typically steady business, and bondholders rank ahead of shareholders....

....In all seriousness, the original poster used the words "low risk appetite." Some vehicles are genuinely low risk, and some aren't.

 

[HoGnix]

Or how about Hyflux bonds? Everyone needs water, government contracts are typically steady business, and bondholders rank ahead of shareholders....

....In all seriousness, the original poster used the words "low risk appetite." Some vehicles are genuinely low risk, and some aren't.

I don't think there is any significant risk for Astrea, you cannot compare Astrea with Hyflex.
in my view put 150K into UOB has more risk than put in Astrea.

 

[henrylbh]

Yes, the bank(s) may continue to trade. However, shareholders still get wiped out in that event. Quite rightly so.

Some Credit Suisse bondholders got wiped out, and CS shareholders got nearly wiped out. CS still operates as a subsidiary of UBS. All CS account holders had no issues.

I say local banks. You say what sai banks. Sg and gov is not like any other country.

 

[iceblendedchoc]

i certainly won't put all my eggs into just one country in investments. Banks are risky investment, once the reputation is gone, it is gone. It just need one bad egg no matter no good the bank compliance, risk culture are.

 

[limster]

I say local banks. You say what sai banks. Sg and gov is not like any other country.

Yes, the bank(s) may continue to trade. However, shareholders still get wiped out in that event. Quite rightly so.

Some Credit Suisse bondholders got wiped out, and CS shareholders got nearly wiped out. CS still operates as a subsidiary of UBS. All CS account holders had no issues.

Yes, and it just happened that GIC invested in UBS, which ended up taking over CS. If GIC invested in CS, it will probably be the other way round, with CS taking over UBS.
Power of Temasek and GIC!

https://www.forbes.com/2007/12/10/ubs-gic-singapore-markets-equity-cx_jc_1210markets03.html

 

[BBCWatcher]

I say local banks. You say what sai banks. Sg and gov is not like any other country.

If you believe the government is going to bail out all shareholders at 100% of pre-crisis valuation (in this hypothetical), I think you have a brave belief.

 

[ericcsn]

Any company in Sg can fold, even SIA, except the banks. The gov will do all it can to ensure the safety and health of our three local banks as the collapse will devastate the country and economy and even those who are not invested in them.

Those who held bank shares over 40 years through ups and downs are rewarded with bonus shares, rights issue, good dividend yield, excluding special dividends .... as good as properties bought in the past. Shares are easily pledged for loans in case need,at interest rate lower than dividend yield. The current dividend is as good the price some paid for the shares - much more than 100% based on historical cost. One of the companies, I know, holds millions of OCBC at average of cost just over $1 per share. I only wish that I have done what I been saying all along ... banks or companies with good dividend track records over the years.

Yes, the bank(s) may continue to trade. However, shareholders still get wiped out in that event. Quite rightly so.

Some Credit Suisse bondholders got wiped out, and CS shareholders got nearly wiped out. CS still operates as a subsidiary of UBS. All CS account holders had no issues.

Yes. SG govt will not let local banks fail.

Same case as the 2007 crisis, US big banks were too fail.

I jumped in to Citigroup Inc ( which is Citibank) in all these actions; it survived but shareholder values were massively wiped out.

Citigroup has not recovered to pre crisis time and is something like 13 cents to the dollar..of course its current dividends are likewise forgettable compared to its original self...

 

[henrylbh]

If you believe the government is going to bail out all shareholders at 100% of pre-crisis valuation (in this hypothetical), I think you have a brave belief.

Why must assume that gov going to bail out all shareholders? That's unthinkable and dumb.

 

[BBCWatcher]

Why must assume that gov going to bail out all shareholders? That's unthinkable and dumb.

I think you may be onto something.