How to make your money GROW?
-
Originally posted by eagle:
The only thing is now that I start to get interested in stocks, the market gets more bearish. I expect the sti to drop further. And the sti etf is currently priced above the sti...
Perhaps another index that we could look into is the China Index... Just crashed few months ago... and still on the downtrend at the moment...
Not into foreign indices yet....
But thats the beauty of buying STI ETF on a monthly basis....basically you have the advantage of dollar cost averaging, does not matter whether it is high or low to me. hehehe...
But if you planning to buy the STI ETF like a stock, then I would suggest that looking at its NAV would give a good indication of a fair price to buy the STI ETF.... you can find the daily NAV of STI ETF here : like today STI ETF closed at 3.15 but the NAV is 3.11 which means STI ETF is trading at a premium so not a good time to buy it as a stock.
-
Originally posted by gasband:
i am into STI ETF. Low cost fund with a good long term projected returns of 9-11%. Personally I think for a period of 5 years, it will go beyond that.
You can buy it like a Unit Trust too with a monthly deduction. In that way, you spread your risk with dollar cost averaging which means over a very long time, you are almost certain to make a good profit, just a matter of how good. With STI ETF which is an Exchange Traded Fund closely pegged to the performance of the STI, the confidence is that STI is bound to be on the upward curve over the long term despite the short term fluctuations.
The biggest downside for STI ETF i see is that the time that funds will be tied in. But hey its better than leaving it in a bank! I am deducting $250 every month.
hmmm.... will keep in view, thanks.
-
Originally posted by gasband:
Not into foreign indices yet....
But thats the beauty of buying STI ETF on a monthly basis....basically you have the advantage of dollar cost averaging, does not matter whether it is high or low to me. hehehe...
But if you planning to buy the STI ETF like a stock, then I would suggest that looking at its NAV would give a good indication of a fair price to buy the STI ETF.... you can find the daily NAV of STI ETF here : like today STI ETF closed at 3.15 but the NAV is 3.11 which means STI ETF is trading at a premium so not a good time to buy it as a stock.
Yup that's what I planned to... But not at the moment cuz I expect it to drop in the short term...
Thanks for sharing the website :D
Just a question for you... How easily can it be liquidated if required?
-
Originally posted by eagle:
Yup that's what I planned to... But not at the moment cuz I expect it to drop in the short term...
Thanks for sharing the website :D
Just a question for you... How easily can it be liquidated if required?
As a stock, it can liquidated anytime, i believe you know that already hehe
As what I am doing, the other downside which to me is not a big downside is that it can only be liquidated in a whole lot. Because I only deduct $250 per month, I may end up with number of shares that look like this after 10 months : 769 shares. The policy is that you can only liquidate if you have a whole lot, meaning 1000 shares. At my rate of deduction of $250 per month,you may need around a year before you may possibly have that ONE lot. SO liquidation will take one year at least but this mode of investment was never meant to be liquidated fast lah... so do it only if you have extra money to be set aside every month.....
-
Originally posted by browniebaobao:
most of them will tie u down for a few yrs.. and if u wana take out ur money within that stipulated years, ur interest will be forefeited and may not get back ur principal.
yes so bottom line is make sure u have NO use of the money for e next few yrs -
u can also do an investment link product...this is reg savings for e long run..yet having some liquidity at hand...
-
No easy way lar .
Unless u very lucky or smarty .
If not work and work .
-
-----------------------
If you got less than a thousand, just save the money in the bank. It will do the job. But if you have around $5000 at least, there are things which will give you a good return. If dun wan stocks and dun wan too long, i would suggest foreign exchange fixed deposit which can be deposited for 1 - 6 months which good returns of like 7-8% for AUD.
----------------------
How do you go about opening a fixed deposit account in foreign currencies, can it be done thru the local banks? and how do you hedge against currency risk?
-
plant it and water it daily. hope and pray that a money tree will grow
-
A little sunshine and little water and lotsa love!
-
use water, fertilizer and tender loving care
-
Low risk low returns: Government bonds, fixed deposits, Index funds.
High risk high returns: On paper empty promises of very high returns eg. double digit returns annually, but at the end of the contract or period, siao liao market down, price low and cannot pay. Have to sell at loss or break even. Don't believe when someone say they can get you 100+% returns year after year.
Low risk high returns: Many people think its not possible, but when you ask value investors whether it is possible. They tell you time after time that they are buying businesses of this kind.
In this low market, stocks are actually priced cheaper. So it is a good time to buy. When you are buying things, you want it to be at a discount and cheap right? I noticed that when it comes to investments, humans become illogical. You have to know how to differentiate between value and price. I give you an example of a soft drink. You know that the value of a soft drink is around $1-$2. But if i were to sell it to you per drink at $5, would you buy? Many people in the investment arena are actually buying at this kind of price and yet dont know the value of the investment. How about if one day im desperate to sell the same soft drink to you at $0.30? You have got a good bargain. :D
This example do not only apply in stocks, it applies to all invesments, be it property, commodities and investment funds.
If you dont intend to put in effort to learn about investments, i suggest you go buy index funds. Invest long term. Always invest in what you understand. Cause risk is attributed to something that you do not understand. Just like driving a car, you know how to drive, you are in a safer situation than someone who dont know how to drive.
-
Originally posted by Evangel:
Low risk low returns: Government bonds, fixed deposits, Index funds.
High risk high returns: On paper empty promises of very high returns eg. double digit returns annually, but at the end of the contract or period, siao liao market down, price low and cannot pay. Have to sell at loss or break even. Don't believe when someone say they can get you 100+% returns year after year.
Low risk high returns: Many people think its not possible, but when you ask value investors whether it is possible. They tell you time after time that they are buying businesses of this kind.
In this low market, stocks are actually priced cheaper. So it is a good time to buy. When you are buying things, you want it to be at a discount and cheap right? I noticed that when it comes to investments, humans become illogical. You have to know how to differentiate between value and price. I give you an example of a soft drink. You know that the value of a soft drink is around $1-$2. But if i were to sell it to you per drink at $5, would you buy? Many people in the investment arena are actually buying at this kind of price and yet dont know the value of the investment. How about if one day im desperate to sell the same soft drink to you at $0.30? You have got a good bargain. :D
This example do not only apply in stocks, it applies to all invesments, be it property, commodities and investment funds.
If you dont intend to put in effort to learn about investments, i suggest you go buy index funds. Invest long term. Always invest in what you understand. Cause risk is attributed to something that you do not understand. Just like driving a car, you know how to drive, you are in a safer situation than someone who dont know how to drive.
Sounds like content from Adam Khoo's book
Same example
-
im a ccb spammer
-
Originally posted by eagle:
Sounds like content from Adam Khoo's bookSame example
I gave the example myself. Who is Adam Khoo? I dont read his book.
But i read a lot about Warren Buffett and applied his wisdoms like invest inside my own circle of competency. I do my own investments myself by reading The intelligent Investor and Security Analysis from Benjamin Graham. Warren Buffett's shifu. :D
I also read other books from value investors like Philip Fisher and Peter Lynch. Im sure they are much richer than Adam Khoo haha...
-
Originally posted by Evangel:
I gave the example myself. Who is Adam Khoo? I dont read his book.
But i read a lot about Warren Buffett and applied his wisdoms like invest inside my own circle of competency. I do my own investments myself by reading The intelligent Investor and Security Analysis from Benjamin Graham. Warren Buffett's shifu. :D
I also read other books from value investors like Philip Fisher and Peter Lynch. Im sure they are much richer than Adam Khoo haha...
You got their ebooks? Or hardcopy...I looking for more such books to read also :D
-
I bought those books myself. The more i read, the better are my investment decisions. I think there are some books i mentioned on google ebooks.
Oh, i went to check up on Adam Khoo. His core business are his seminars and motivational talks lah. So expensive, $5k++ per student. I'll rather buy investment books or motivational talk books to read. I feel that if one is motivated in life, you will always be motivated when you have a goal in life. Dont need seminars and stuffs. If the kid's parents can motivate them, why need Adam Khoo? After a year or so, children will inevitably follow the character and behaviours of the parent. If your parents are really unmotivated and keep complaining about life, you will be influenced also. Then with all the net profits, he further went on to invest his earnings. Smart guy. :D
His webby looks like some MLM stuffs, i dont really like. Not a fan of MLM.
-
Originally posted by Evangel:
I bought those books myself. The more i read, the better are my investment decisions. I think there are some books i mentioned on google ebooks.
Oh, i went to check up on Adam Khoo. His core business are his seminars and motivational talks lah. So expensive, $5k++ per student. I'll rather buy investment books or motivational talk books to read. I feel that if one is motivated in life, you will always be motivated when you have a goal in life. Dont need seminars and stuffs. If the kid's parents can motivate them, why need Adam Khoo? After a year or so, children will inevitably follow the character and behaviours of the parent. If your parents are really unmotivated and keep complaining about life, you will be influenced also. Then with all the net profits, he further went on to invest his earnings. Smart guy. :D
His webby looks like some MLM stuffs, i dont really like. Not a fan of MLM.
I flipped through his books in Borders mah
There's one on investments... And it looks like a quick summary of the books you mentioned (I think so cuz he mentioned those books that you mentioned you have read).Me is motivated enough, no need him de...
But there are some things (although very common sense) that he mentioned that are very true...Btw, where did you buy those books? I must try download them... heh...
-
ccb spammer is me.
-
Originally posted by browniebaobao:
As above.
Pls share your tips in making your money grow, besides saving money.
Investment may not be wise, looking at the market now.
Fixed Deposits interests are not attractive.. insurance/endowment plans are mostly investment-linked..currency exchange? the rates fluctuates everyday.
Dun tell me gamble.. might end up with nothing only.
Is there any other way that will yield great return and low risk involved?
gamble lo to win or too lose money.buy soccer bet easy to win if u know to judge. investment is the key to wealth,save,that the most basic and u also mention insurance.property rent,luck that the most important u need to grow money,start a business so u control your income say easy the do part is hard.
-
Originally posted by eagle:
I flipped through his books in Borders mah
There's one on investments... And it looks like a quick summary of the books you mentioned (I think so cuz he mentioned those books that you mentioned you have read).Me is motivated enough, no need him de...
But there are some things (although very
common sense) that he mentioned that are very true...Btw, where did you buy those books? I must try download them... heh...
Kinokuniya, Borders, Time bookstore all got sell. I personally think that if you want to do your own stock pickings, have to read The Intelligent investor (simpler book), Security Analysis (investment bible) both by Benjamin Graham. Also Common stocks and uncommon profits by Philip Fisher. Read Warren Buffett's annual letter to shareholders also.
If you want to earn reasonable profits in investments, have to read a lot a lot hahaha...
-
Originally posted by fox_hound_33:
-----------------------
If you got less than a thousand, just save the money in the bank. It will do the job. But if you have around $5000 at least, there are things which will give you a good return. If dun wan stocks and dun wan too long, i would suggest foreign exchange fixed deposit which can be deposited for 1 - 6 months which good returns of like 7-8% for AUD.
----------------------
How do you go about opening a fixed deposit account in foreign currencies, can it be done thru the local banks? and how do you hedge against currency risk?
Would be too much for me to type it out...the process itself is pretty much found all over the internet... just provide one of the many such sites....
my personal take on hedging against a currency risk is a personal risk you have to undertake. By investing in foreign currencies, you are hoping to earn:
1) by the high interest rate, which is really very high compare to our singapore rates...
2) that the currency will appreciate against SGD.
If an AUD FIXED D gives you 8% for a 3 month lock in period, the possible scenarios are:
1) You earn the interest plus the currency stagnates against SGD. you get back capital minus off cost which is normally negligible against the interest earned, esp if you use the better method of changing the currency with an online platform like POEMS and TX to the bank rather then converting at the bank itself.
2) You earn the interest plus the currency appreciates against SGD and earn on that appreciation upon conversion back to SGD
3) You earn the interest but the currency depreciates at a rate lower than interest against SGD. So you still get back your capital plus some interest earned
4) You earn the interest but the currency depreciates at a rate higher than interest earned against SGD. You suffer capital loss.
With 4 possible scenarios, you are only at risk of loss with one scenario. Therefore, it is important for yourself to analyse and take a personal risk on whether within that 3-6 months of investment, what is the possibility of the currency depreciating so much you will suffer capital loss esp when the interest earned is so much higher than singapore rates. That is the risk you have to undertake yourself...dun think even the experts can give a 100% assessment of what will happen 3-6 months down the road.
-
i heard abt the investment in AUD currency before.. but how to go abt it?
the exchange rates fluctuate everyday.. juz like in the past, ple think USD v good.. but now? it has dropped to around 1.36 liao. maybe it's a goof time to buy now, but when will u see the return? how much to invest then will u see the satisfactory return?
8% return for 3 months locked in period, is it possible?
-
Originally posted by Evangel:
Kinokuniya, Borders, Time bookstore all got sell. I personally think that if you want to do your own stock pickings, have to read The Intelligent investor (simpler book), Security Analysis (investment bible) both by Benjamin Graham. Also Common stocks and uncommon profits by Philip Fisher. Read Warren Buffett's annual letter to shareholders also.
If you want to earn reasonable profits in investments, have to read a lot a lot hahaha...
Heh heh... thanks for the names... Downloaded Intelligent Investor before, but haven't read...
-
Originally posted by browniebaobao:
i heard abt the investment in AUD currency before.. but how to go abt it?
the exchange rates fluctuate everyday.. juz like in the past, ple think USD v good.. but now? it has dropped to around 1.36 liao. maybe it's a goof time to buy now, but when will u see the return? how much to invest then will u see the satisfactory return?
8% return for 3 months locked in period, is it possible?
I posted the general process in my last reply, so take a look at that. I have not dwell into too much becos of the minimum $5000 needed. Its a lump sum to invest but I will look into that soon. I dun have too much info yet. It is definitely 8% with periods ranging from 3-6 months. BUT i do not know whether it is 8% based on a 6 month/12 months locked in or prorated for 3 months.... it is better to call various banks to check their interest rates and their terms. Different banks offer different interest rates for AUD fixed D...