What will U do with 400K cash (not CPF) if you cannot buy any residential till 2019

[Kokono]

I would like to seek the advice from all the seniors and wise investors in this forum what advice would you give to a small timer who hypothetically has $400K cash (not CPF) right now and who cannot buy any residential property till 2019.

This $400K cash ultimately is meant for the children's tertiary education in 15 years time.

In addition, due to TDSR ruling, the small timer can only loan a meagre $300K more.

Should the small timer:

a) park all the $400K in a fixed deposit or ETF fund or buy preference shares for 4.5% return?

b) buy a tiny commercial unit, example Katong Shopping Centre or Golden Mile Complex

c) Buy endowment?

d) Some better advice?

[jeaprp]

I would like to seek the advice from all the seniors and wise investors in this forum what advice would you give to a small timer who hypothetically has $400K cash (not CPF) right now and who cannot buy any residential property till 2019.

This $400K cash ultimately is meant for the children's tertiary education in 15 years time.

In addition, due to TDSR ruling, the small timer can only loan a meagre $300K more.

Should the small timer:

a) park all the $400K in a fixed deposit or ETF fund or buy preference shares for 4.5% return?

b) buy a tiny commercial unit, example Katong Shopping Centre or Golden Mile Complex

c) Buy endowment?

d) Some better advice?

option a

[taggy]

buy commercial shop ?

[leesg123]

I would like to seek the advice from all the seniors and wise investors in this forum what advice would you give to a small timer who hypothetically has $400K cash (not CPF) right now and who cannot buy any residential property till 2019.

This $400K cash ultimately is meant for the children's tertiary education in 15 years time.

In addition, due to TDSR ruling, the small timer can only loan a meagre $300K more.

Should the small timer:

a) park all the $400K in a fixed deposit or ETF fund or buy preference shares for 4.5% return?

b) buy a tiny commercial unit, example Katong Shopping Centre or Golden Mile Complex

c) Buy endowment?

d) Some better advice?

Buy a good freehold condo in KLCC for abt 300k. Rental of 5% & get a capital gain after 15 years.

[Ringo33]

I would like to seek the advice from all the seniors and wise investors in this forum what advice would you give to a small timer who hypothetically has $400K cash (not CPF) right now and who cannot buy any residential property till 2019.

This $400K cash ultimately is meant for the children's tertiary education in 15 years time.

In addition, due to TDSR ruling, the small timer can only loan a meagre $300K more.

Should the small timer:

a) park all the $400K in a fixed deposit or ETF fund or buy preference shares for 4.5% return?

b) buy a tiny commercial unit, example Katong Shopping Centre or Golden Mile Complex

c) Buy endowment?

d) Some better advice?

If its for children education, then I would choose endowment.

Buying property risk kenna stuck during downturn. What if it happen right before your children need it for the education?

Are you sure FD can get your such high return?

Alternatively, if you one risk free investment, just put money back into your CPF and earn interest. At least for CPF you can still withdraw

[indomie]

If its for children education, then I would choose endowment.

Buying property risk kenna stuck during downturn. What if it happen right before your children need it for the education?

Are you sure FD can get your such high return?

Alternatively, if you one risk free investment, just put money back into your CPF and earn interest. At least for CPF you can still withdraw

But 15 years is a long time frame. Any risk can be minimized with time.

[Ringo33]

But 15 years is a long time frame. Any risk can be minimized with time.

I never believe in having an exit dateline for investment as you can get burn pretty badly if you need to sell at the wrong time. The market correction in 2008 was a very good example. But I am surprise why cannot buy property till 2019? MOP after buying HDB?

[cavaliver]

I bought a 21 year endowment which is going to mature next year but the return is really poor. Not sure if I would recommend anyone to buy. Traditionally endowment is meant for children education, retirement planning, etc. Maybe someone can suggest a better instrument ?

[Arcachon]

I would like to seek the advice from all the seniors and wise investors in this forum what advice would you give to a small timer who hypothetically has $400K cash (not CPF) right now and who cannot buy any residential property till 2019.

This $400K cash ultimately is meant for the children's tertiary education in 15 years time.

In addition, due to TDSR ruling, the small timer can only loan a meagre $300K more.

Should the small timer:

a) park all the $400K in a fixed deposit or ETF fund or buy preference shares for 4.5% return?

b) buy a tiny commercial unit, example Katong Shopping Centre or Golden Mile Complex

c) Buy endowment?

d) Some better advice?

Do your parents or in-law renting, if yes buy a 3 room HDB for them and Will it to you.

Brought one in 95 at SGD 65,000 (30K Grant) with 25 yrs loan now fully paid val at SGD 300,000.

[3C]

BJ21 confirmed property drop by 30% by end 2013. Can considered to hold 2 and half months more than whet one investment unit if you trust him.

[cavaliver]

Do your parents or in-law renting, if yes buy a 3 room HDB for them and Will it to you.

Brought one in 95 at SGD 65,000 (30K Grant) with 25 yrs loan now fully paid val at SGD 300,000.

I m going Europe to work next month after reading your posts.

[DC33_2008]

$400k cash is not a lot of money to household income of $400k a year but a lot to a household of $100k. Besides this, it also depends on your age, liabilities, job security, children's age, etc. You know yourself best. I believe it is better for you to invest some principal protected and some in non-principal protected product. Ratio will depend on your risk appetitite.

I would like to seek the advice from all the seniors and wise investors in this forum what advice would you give to a small timer who hypothetically has $400K cash (not CPF) right now and who cannot buy any residential property till 2019.

This $400K cash ultimately is meant for the children's tertiary education in 15 years time.

In addition, due to TDSR ruling, the small timer can only loan a meagre $300K more.

Should the small timer:

a) park all the $400K in a fixed deposit or ETF fund or buy preference shares for 4.5% return?

b) buy a tiny commercial unit, example Katong Shopping Centre or Golden Mile Complex

c) Buy endowment?

d) Some better advice?

[Allthepies]

assume a strict 15 years investment timeline, i will propose
option e) do nothing

[mermaid]

lend yr 400k to fellow condospore forummers who cannot get loan. they will sign a IOU wif u & willing to pay u 2% interest per annum

[cavaliver]

lend yr 400k to fellow condospore forummers who cannot get loan. they will sign a IOU wif u & willing to pay u 2% interest per annum

Hahahaha.... good idea

[3C]

$400k is a big sum of money. Not many people has seen this sum in cash in their lifetime. No wonder people say no money headache. Those rich ones have money largy headache.

[mermaid]

$400k is a big sum of money. Not many people has seen this sum in cash in their lifetime. No wonder people say no money headache. Those rich ones have money largy headache.

having $400k hard cash cannot be considered as the rich la. merely upper sandwiched class nia

Hahahaha.... good idea

Im waiting for ppl to propose tat to me, hehe

[relax88]

I would like to seek the advice from all the seniors and wise investors in this forum what advice would you give to a small timer who hypothetically has $400K cash (not CPF) right now and who cannot buy any residential property till 2019.

This $400K cash ultimately is meant for the children's tertiary education in 15 years time.

In addition, due to TDSR ruling, the small timer can only loan a meagre $300K more.

Should the small timer:

a) park all the $400K in a fixed deposit or ETF fund or buy preference shares for 4.5% return?

b) buy a tiny commercial unit, example Katong Shopping Centre or Golden Mile Complex

c) Buy endowment?

d) Some better advice?

SABBIE.......WELCOME

[august]

depending on your asset allocation, otherwise just keep the 400k as opportunity fund.

[Kokono]

I never believe in having an exit dateline for investment as you can get burn pretty badly if you need to sell at the wrong time. The market correction in 2008 was a very good example. But I am surprise why cannot buy property till 2019? MOP after buying HDB?

Yeah. Bought EC. TOP 2014/15. Then MOP till 2019.

[JNSYN]

Yeah. Bought EC. TOP 2014/15. Then MOP till 2019.

In this case, cannot even buy oversea residential property.

Can consider 60years leasehold industrial unit.

[Ringo33]

Yeah. Bought EC. TOP 2014/15. Then MOP till 2019.

Dont invest for the sake of investing.

If I am in your situation, i will just keep the cash in FD and wait for opportunity to come by. $400k could come in handy if interest goes up, per perhaps you can use the next 4 to 5 years to build up your reserve and then buy your 2nd property in 2019.

[amk]

Aiyo why invest must be property ? At today's market , invest in something else that give you a real yield lah !

My buy call today : cheung kong perp bond , in SGD, yield around 6% . Now it's a bit up. Watch for dip opportunity. This is the only safe ( for me ) bond the has a > 5% yield and can last for long time. All local bank pref shares yield < 5% now and not truly long term as bank can redeem them easily. Your 400k just nice, buy 1 bond still have abt 200k left, then can stay as opportunity fund.

[Simi]

Keep the money in FD

invest only when you can afford to lose
ie becoming ZERO overnight

[Violinbite]

[QUOTE=Kokono;437963]I would like to seek the advice from all the seniors and wise investors in this forum what advice would you give to a small timer who hypothetically has $400K cash (not CPF) right now and who cannot buy any residential property till 2019.

This $400K cash ultimately is meant for the children's tertiary education in 15 years time.

In addition, due to TDSR ruling, the small timer can only loan a meagre $300K more.

Should the small timer:

a) park all the $400K in a fixed deposit or ETF fund or buy preference shares for 4.5% return?

b) buy a tiny commercial unit, example Katong Shopping Centre or Golden Mile Complex

c) Buy endowment?

Two cents of small suggestion: systematically enter into quality REITs. Yield from low 5% to highest 8.5%. Re-invest dividends but keep comfortable cash holdings. Imagine $280k alone of good REITs can fetch about $20k a year.

[radha08]

Buy US bonds