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Old 26-11-2013, 10:58 PM
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As you "don't need" the money anytime soon, I would recommend putting them into stocks of companies with sound foundamentals where the dividends beat bond coupons anytime. Coupled with the dividend yield is the potential for capital appreciation. Yes stocks are more volatile but you have holding power. Bonds on the other gave a fixed coupon rate which at current inflation rates possibly give zero net gain. When interest rates rise, bond prices are the first to dive.

So what stocks to acquire? There are many good sites that provide "advices" if you like. Eg. Investment Moat, Motley Fools, even AK71. Check them out.

Actually, any economic student will tell you. In a climate of low interest rate, and high inflation rate, the thing to do is take up loan to invest! Over time, the loan you take will shrink in value purely due to inflation, while your investment will grow in that period. The borrower wins!

Perhaps you understand why properties are still a popular choice.

Quote:
Originally Posted by teatree View Post
Hello, new to the forum here. I was reading about the investment advice some of you gave. If I have 250k spare cash right now, what would be a good investment vehicle? I'm pretty risk-averse, although I have the capacity to take on more risk, just need a bit of convincing. Anything beats leaving money in the bank.... I don't need the 250k, so I don't have a fixed time horizon for this investment.

What do you guys think of perpetual bonds? Its a pretty hot thing in Singapore right now?
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