What to do with $20,000
- Thread starter iluvabc
- Start date
Congratulations on getting a house and/or your wedding 
Unfortunately with the current interest rate environment, you cannot expect a very high return given the short-to-medium term period of 3-4 years.
On one end of safety, we have fixed deposits. The highest in town should be ICICI HiSave's 1.7% pa for a 3-year FD. Maybank's board rate is 1.2% pa for a 3-year FD. Alternatively, if you are not comfortable with that long a term, ICICI or CIMB have 1-year FDs at 1.1% pa. 1.7% pa means a total return of about $1,020 on your $20k. This is the baseline.
I wouldn't go into stocks, even high yield stocks, because who knows where the market will be in just a few years' time. The ideal would be a bond or single-premium policy that matures in 3-4 years that gives a somewhat higher return than plain FDs, but there haven't been many such offers for retail investors recently.
I like one of the bank preference shares listed on SGX, OCC 3.93%. Provided OCBC chooses to redeem on the earliest possible date in Mar 2015, the return is around 3% pa at the current price minus brokerage. There is minimal credit risk but some term risk in case OCBC chooses not to redeem and you have to sell it in the open market. However, this issue can be illiquid - there were no trades today.
Unfortunately with the current interest rate environment, you cannot expect a very high return given the short-to-medium term period of 3-4 years.
On one end of safety, we have fixed deposits. The highest in town should be ICICI HiSave's 1.7% pa for a 3-year FD. Maybank's board rate is 1.2% pa for a 3-year FD. Alternatively, if you are not comfortable with that long a term, ICICI or CIMB have 1-year FDs at 1.1% pa. 1.7% pa means a total return of about $1,020 on your $20k. This is the baseline.
I wouldn't go into stocks, even high yield stocks, because who knows where the market will be in just a few years' time. The ideal would be a bond or single-premium policy that matures in 3-4 years that gives a somewhat higher return than plain FDs, but there haven't been many such offers for retail investors recently.
I like one of the bank preference shares listed on SGX, OCC 3.93%. Provided OCBC chooses to redeem on the earliest possible date in Mar 2015, the return is around 3% pa at the current price minus brokerage. There is minimal credit risk but some term risk in case OCBC chooses not to redeem and you have to sell it in the open market. However, this issue can be illiquid - there were no trades today.
Dividends Warrior
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iloveahmeng
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open a trading acc...invest into some penny stocks and continue to save up.
But if we look at it in another way, once you have children, your appetite for risk will be much smaller, the more you will stay out of stocks and shares. So maybe now is a good time to look at higher yield investment vehicles.
Talk with your spouse maybe? Plans for children, apartment upgrade? Then maybe you know the timeframe you can safely lock your money away to grow.
Gd luck
Talk with your spouse maybe? Plans for children, apartment upgrade? Then maybe you know the timeframe you can safely lock your money away to grow.
Gd luck
devilmaniac
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brainless investment.. but if the low interest of fd is ok .. then go for fd then..
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