What can I do with 50?

[Malakite]

Hi guys, after the sale of my flat, I'm currently setting aside 50k for investment or whatever.

I'm the old school, very cautious with money kind. So was thinking of FD but realise, the interest rates such big time. What would be the best course of action for me if I wanted to park my money somewhere but still have access to it in case something happened? Overseas bank acc? I know the Australian banks give more interest than local banks but are there any pitfalls?
TIA.

 

[aural]

there are loads of things you can do with 50k. However all solutions have to suit you. Factors like family commitment, age, goals and many other factors will have to be considered before.

 

[alexchia01]

Hi guys, after the sale of my flat, I'm currently setting aside 50k for investment or whatever.

I'm the old school, very cautious with money kind. So was thinking of FD but realise, the interest rates such big time. What would be the best course of action for me if I wanted to park my money somewhere but still have access to it in case something happened? Overseas bank acc? I know the Australian banks give more interest than local banks but are there any pitfalls?
TIA.

With no knowledge of investing and not knowing what you want to do with the money, I suggest you just put them in a FD.

If you choose to put into a foreign currency FD with higher interest, just know there is exchange rate risk.

 

[wts2013]

best interest rate in town is OCBC360, savings a/c that can earn u 1.05%, 2.05% or 3.05% if u can meet 1 to 3 criteria. Flexi withdrawal anytime. Not difficult to meet:

1. if u have salary crediting
2. if u can pay 3 credit card bills per mth, any amt
3. if u charge $400 min per mth to ocbc credit cards cumulative

 

[makav31i]

best interest rate in town is OCBC360, savings a/c that can earn u 1.05%, 2.05% or 3.05% if u can meet 1 to 3 criteria. Flexi withdrawal anytime. Not difficult to meet:

1. if u have salary crediting
2. if u can pay 3 credit card bills per mth, any amt
3. if u charge $400 min per mth to ocbc credit cards cumulative

Up for OCBC 360 account...

 

[Futureskid]

Hi guys, after the sale of my flat, I'm currently setting aside 50k for investment or whatever.

I'm the old school, very cautious with money kind. So was thinking of FD but realise, the interest rates such big time. What would be the best course of action for me if I wanted to park my money somewhere but still have access to it in case something happened? Overseas bank acc? I know the Australian banks give more interest than local banks but are there any pitfalls?
TIA.

Put in CPF! With up to 4% returns!
This is best for old school, very cautious with money kind person. In case something happens, u can still use for healthcare or housing!

 

[Lewis.T]

Putting in cpf is the exact opposite of having liquidity..

 

[wts2013]

If u are above 55 and meet CPF minimum requirements, put in CPF is like a 1 year FD, can withdraw at next birthday. Somemore if u topup CPF using cc, can earn rebates. Max CPF topup is 30,600 per year.

 

[Futureskid]

Putting in cpf is the exact opposite of having liquidity..

He doesn't need liquidity! He only needs it if something happens! So CPF is the best FOR HIM!

 

[FP_IFA]

He doesn't need liquidity! He only needs it if something happens! So CPF is the best FOR HIM!

If something happens, how is he going to get the money back from CPF?

 

[cscs3]

Put in CPF! With up to 4% returns!
This is best for old school, very cautious with money kind person. In case something happens, u can still use for healthcare or housing!

Yes, that's what I would do too.

 

[cscs3]

He doesn't need liquidity! He only needs it if something happens! So CPF is the best FOR HIM!

He already say setting aside $50K to begin with. So I guess it is ok.
This is especially good if he is already age 55 or above. Better still, part of the $50K is tax deductible. So actual earning is more then 4%.

 

[Shiny Things]

I'm the old school, very cautious with money kind. So was thinking of FD but realise, the interest rates such big time. What would be the best course of action for me if I wanted to park my money somewhere but still have access to it in case something happened? Overseas bank acc? I know the Australian banks give more interest than local banks but are there any pitfalls?
TIA.

Nooooo, don't do this.

You've had some pretty good advice upthread, so I just wanted to warn you away from overseas bank accounts. If you put your money in an Australian bank account, you're taking on a huge slug of currency risk in return for the higher interest rates: AUDSGD dropped 30% during 2008, so you'd be putting 30% of your money at risk for a couple of extra percentage points of interest.

 

[chopra]

Up for OCBC 360 account...

Upppppppppppppppppp

 

[Malakite]

Whoa, thanks for the reply guys, sorry I guess I need to clear up some stuff.

1) I'm 33 this year, still working like a dog.

2) 50k to set aside, I'm hoping it will grow to supplement my retirement funds.

3) Don't really wanna put it in cpf cause if I need access to cash, can't get it back.

I totally forgot about the exchange rate pitfall. Guess I have to rethink that one.

Would it be better to invest half for long term goals say, 10-15 years in a conservative portfolio and the other half in FD for the in case I need the cash situation.

 

[Lewis.T]

Try to get rid of the 'in case you need the cash' mentality. It'll work out better in the long run.

Have some savings set aside in the bank for emergency purposes, but if you have comprehensive insurance coverage nothing should break your rice bowl that is out of your control.

Only do an FD if you are sure you have something you want to commit to in the short term. Short term planning can be funded with your salary if it makes any sense to you.