I need advice on my 4mil in savings

Business Money
1

I have around 4 million NT in savings just sitting in the bank. I need some sounds advice on what to do with it. My main concern is trying to beat inflation. Ideally though I would like to invest in it and get aroudn 3-5% return on the savings per month. I tried looking up Forex and the stock market but they seem too risky for me. Saving accounts in the country where I am give very low interest rates too.

Can someone recommend the best way to invest in my savings as I dont want it sitting in the account like this. :bow:

2

yes of course, you transfer it onto my account and I gonna buy a house with that, somwhere in Ylan or so

3

Don’t tell people how much you got.

4

3-5% a month?!?!?!

5

ETFs with bonds as the underlying might get you 1-2% per annum.

A little bit riskier would be buying stocks in large cap companies that offer dividend payments. You might get dividend yields of 3%.

6

You can look at “Foreign currency savings account” and “Foreign currency time deposit”, I think right now only deposit in chinese yuan and australian dollar gets you 2.5% a year. Also can look into gold/silver (That is if you don’t like bonds and equities). Don’t put all your saving in one basket.

7

Invest some of it in good no-load mutual funds, like Vanguard or Fidelity. Definitely look for variety. For cash on hand, and the ability to move money from one place to another, it would be good to have a money market savings account.

Of course, a lot of advice depends on how old you are. It makes a difference if you’re in your 20s or in your 60s.

8

buy some farm land

9

2.5% might be the official interest rate set by the Reserve Bank of Aus, but you get 4.5% in HSBC Aussie dollar term deposits.

You can get anywhere from 4.5% - 12% per annum, paid monthly with bond based mutual funds which also give you growth on your principle, although the value of the principle can go down as well at times. In the volatile markets we’ve experienced the last couple of years I’ve found the bond funds to be quite resilient and stable in value with small growth in principle and reliable monthly returns.

You are lucky. With 4 million you can build quite a diverse base including land, as others have advised, term deposits and funds/equities, etc.

*This information does not constitute financial advice. Before making investment decisions…yada, yada, yada

10

With all due respect to the other posters, I wouldn’t put a single NT into mutual funds. The American stock market value is barely higher that it was 10 years ago. With the global economy shaky at best, another sizable dip could be right around the corner. The economists that said the market always trends upwards despite the cycles weren’t talking about the last decade. Very very iffy is you ask me. Farm land on the other hand is something tangible that will surely increase in value sooner or later barring nuclear contamination or someone laying a mine field through it. As far as i know there’s not a huge property bubble for rural land here. Having a nice piece of land paid off would be great to fall back on later. If things went bad for you for one reason or another at least you’d have a place to live and grow food. If things get really bad in other markets all you’ll have to show for it is less money. If you insist on dabbling with mutual funds it would make more sense to have a token amount automatically withdrawn from your account each month directly into the fund. Who knows, it might actually build up to a decent chunk of cash at some point. But if I was any kind of genius with money I’d have 4mil in the bank too

11

Be VERY conservative with it. You’ll get a lower interest, but it’s probable that you can find a guaranteed investment, so regardless of the global economical situation, you’ll have a guaranteed interest.

12

[quote=“robert”]I have around 4 million NT in savings just sitting in the bank. I need some sounds advice on what to do with it. My main concern is trying to beat inflation. Ideally though I would like to invest in it and get aroudn 3-5% return on the savings per month. I tried looking up Forex and the stock market but they seem too risky for me. Saving accounts in the country where I am give very low interest rates too.

Can someone recommend the best way to invest in my savings as I don’t want it sitting in the account like this. :bow:[/quote]
If you are serious about this return, then I should introduce you to my friend. He recently sold me on HFT (High Frequency Trading). This is program trading for consumers. Pretty wild shit if you ask me. In this group, it targets 1% return a week - which is right in your target range. I’ve been in for 3 weeks, and it’s been crazy. The week starts with these big losses, and they adjust their program through the week. So far, I’m up about 6% absolute return in almost 3 weeks of trading. If it keeps up like this for another 2 and a half months, I’ll seriously look at adding more.

The kind of HFT the group is doing is currency microtrading - so hundreds of trades a day, but each trade is for tiny amounts, like 2 or GBP1. Profits are pennies, and there's a hefty floating margin. For my buddy's group, it's US 50,000 to play, though I’m told they prefer accounts start at 100,000. I think they a big chunk out when you cash out - like 1/3 - but at the rate this is going, there is nothing like it that I’m invested in, and they would deserve it.

Plus, HFT firms get these rebates from the exchanges because of all the trading they do (at least that’s what I understand when it was explained to me). So, every now and then, they kick out extra cash. When I signed up, I opened a minimum 50k account, and was rewarded 1k off the bat. So just like that I’m up 2%. Add in the 3k trading profits so far, and it’s near 10% for the month.

I suggest you do your own research – Google MetaTrader4. That’s the software I was told to use to track this stuff.

If you want to meet my friend, I’ll have to check with him first before introducing you. He’s an ex-colleague and a really nice guy. And I’m grateful he’s got me trying this out. He may want to keep this with people he knows directly.

13

My mate Bernie used to guarantee 12% per annum. However, his circumstances recently are a little reduced so he’s now prepared to offer you the 4-5% monthlyreturn that you require. Drop me a PM and I’ll get you his details.

14

HFT can really screw you too.

Do you really think the big guys (think large banks in USA) are going to let some guys with a freely available HFT software outsmart them.

He will make money until one day he loses it all.

15

Be real careful with this stuff, if there is a jump during which market is illiquid, you might loose 100% of your investment, or even being in debt in extreme case.
(Or make a killing, this is big risk, big reward, but remember you are playing mostly against professionals traders who have the ability to stay in the market longer than you)

16

buy us govt bonds. Thtas what China does.

the rest is high risk and you can kiss ur money good bye very fast.

17

I think the land option so far it what appeals to me the most. I don’t have any confidence in stocks/bonds right now. Actually I thought about taking a 7 million loan with the bank and using that with my savings to buy a property in London as an investment since their economy is really bad at the moment. Although I’m not sure on that yet. Still considering other options right now.

18

I am familiar with the market in London, you’ll probably get something like 2.5% from the value of the property in income, from which you’ll have to remove interest payments and capital repayment, so you’ll end up out of pocket. Better buy property you can afford, so you don’t have too much debt, and you get passive income immediatly.

19

The economy is bad but property prices are very high in London. Plus lots of taxes, other issues. Wouldn’t bother with that. Keep most of your money in cash, some in gold, some in natural gas stocks perhaps.

20

Chris is dead-on with his statement that it depends on your age etc. Absolutely. You post is pretty general re: what you want to accomplish - beat inflation and earn 3-5% per month return. That kind of return sounds really aggressive in the current market - the world is swimming in artifical liquidity and rates are low. Anything that offers more than a minimal return right now is likely fairly far out on the risk curve. Anyway, I would suggest you sit down and do some detailed sorting out of your current current and prospective financial situation - What do you have in addition to the $4MMNT (any other savings?), stable employment situation?, what’s your age, your health? What are your long-term needs (a house, education for children, travel, retirement)? What is your investment horizon (5 years or 25 years)? What is your risk tolerance? Someone mentioned HFT - that is a high risk, high return game. Are you comfortable with the prospect of hitting it big or losing it all? Before you dive into HFT or any other such activity - know A-to-Z how the guys runnig it make their money. They ARE NOT offering the service for free. And they are defintely not your friends. Its a business. Approach it as such. Someone also mentioned raw land (i.e. undeveloped farmland) - maybe not a bad choice although it is not likely to generate any actual income outside of increased value - the only way to actually get your money out is to sell some portion of the land or develop it in some way. You can probably get some return on long bonds but the risk of significant value declines if inflation/interest rates jump is significant. Equities are a reasonable option (though risk exists here as well). Unless you consider yourself a pretty sharp analyst or have very strong understanding of a particular industry or sector, I would suggest a mutual fund (index) with low adminstrative-cost company (Vanguard in the U.S. - no, I am not associated with Vanguard in any way).

Perhaps the best option is to srpead your total over several different options with a mix that is appropriate to your age, goals and risk tolerance. Best to seek professional help on that score. Anyway, $4MMNT is a nice piece of coin…I woulddn’t just throw it at whatever sounds like a quick and easy deal based on what a friend of a friend or friend did.

Good luck