Portfolio Allocation / Management

[bb88]

If you are happy with your "homework", so be it. Shalom.

I know there are many people who are wary/do not believe in preference shares and I presume you're one of them?

[Temperament]

If you are happy with your "homework", so be it. Shalom.

I know there are many people who are wary/do not believe in preference shares and I presume you're one of them?

Yes! My psyche does not allow me to buy this type of products. i like to B/S anytime i like. Another words i dislike perpetual redemption terms. To me is head they win tail we lose kind of contractual terms. Anyway, anyone can make money in his own way. i think only the pigs and lemmings have got no chance. No chance at all. MHO.

[bb88]

If you are happy with your "homework", so be it. Shalom.

I know there are many people who are wary/do not believe in preference shares and I presume you're one of them?

Yes! My psyche does not allow me to buy this type of products. i like to B/S anytime i like. Another words i dislike perpetual redemption terms. To me is head they win tail we lose kind of contractual terms. Anyway, anyone can make money in his own way. i think only the pigs and lemmings have got no chance. No chance at all. MHO.

Guessed as much on the "lack of control".

Some people are also against REITs for reasons touched on rather in-depth in the REITs threads.

The way I see it, PS is an alternative (cheaper) form of financing for the institutions. If they do not redeem, then it could mean a few things such as higher cost of refinancing, lack of cash, better use of capital, etc.

If refinancing costs are low, why wouldn't the institution redeem? Adverse business conditions not allowing the institution to redeem would hurt their credit rating and common share price, etc. which the institution should be well advised to avoid. In the situation, would holding their common shares really be better?

My holdings are not a lot, and very easily taken up by the illiquid daily transactions.

[weijian]

I would not actually deem '4years' to be long.

hi shanrui_91,
Try to only invest $ that you don't need and can lose - With this, it takes away alot of emotions generated from the stress and constraints of the 4 year 'deadline'. One might do better w/o those additional emotional baggage in his/her investing journey.

But at the end of it all, it does sound like you have your parents to bail you out though.

just my 2 cents.

Hi all, need some input on this matter

If someone were to provide you with a $36000 4 years interest free loan, what will you do with it? You can choose to repay in full amount before the 4 years are up and you will not have to pay any interest. However, if you fail to repay in full, you will be charged 4.75% interest rate annually.

Will you put it in fixed deposit (ICICI 1.55%) , retail bond (F&N 2.48%) or dividend stock(SPH 5-6%) or in any other proportion?

4 years is a pretty long time. I will go with one or two stocks to be owned over this period. Market risks are reduced over a long investment time horizon (and good stock picks). Furthermore, your busy school schedule should distract you sufficiently from touching your portfolio, and worse, worrying over it.

[tanlui]

Hi all,

Let's say one has a very modest amount of $100K to invest. In this current investment climate, how would you invest & in what instruments? Hoping to pick the brilliant brains of all fellow forumers. Thanks.

[Jared Seah]

Hello Tanlui,

What do you think?

[tanlui]

Hello Tanlui,

What do you think?

was thinking of bonds, reits, equities on sgx. but for someone with limited knowledge like me, it's very hard. but don't trust unit trusts or advisers, so any advice here?

[Jared Seah]

Hello Tanlui,

I've done my part. Now it's up to the more experienced members here to share their wisdom with you.

Many misunderstood the purpose of "what do you think"?

You could be a newbie, an experienced but moderate investor, or an expert who is here to sharpen your saw.

Now others can tailor their advice to suit your level of understanding and interests

Ex-salesman occupational disease.

[d.o.g.]

was thinking of bonds, reits, equities on sgx. but for someone with limited knowledge like me, it's very hard. but don't trust unit trusts or advisers, so any advice here?

Your first investment should be into acquiring more knowledge. Spend some time reading up on financial planning to figure out how to allocate your money:

1. Are you adequately insured? If you are not, fix this first!
2. What is your $100k for - wedding, car, house, kid's education, retirement etc?
3. What is your risk appetite - how much price volatility can you stomach? How much are you prepared to lose?
4. Are you willing to DIY or pay others to do it?

Only after you have answered #1-4, should you even consider WHAT to invest into.

If you want to DIY, then read some books on investing into stocks, bonds etc. If you want to pay others to do it, then read some books about selecting funds/advisors.

[Temperament]

was thinking of bonds, reits, equities on sgx. but for someone with limited knowledge like me, it's very hard. but don't trust unit trusts or advisers, so any advice here?

Your first investment should be into acquiring more knowledge. Spend some time reading up on financial planning to figure out how to allocate your money:

1. Are you adequately insured? If you are not, fix this first!
2. What is your $100k for - wedding, car, house, kid's education, retirement etc?
3. What is your risk appetite - how much price volatility can you stomach? How much are you prepared to lose?
4. Are you willing to DIY or pay others to do it?

Only after you have answered #1-4, should you even consider WHAT to invest into.

If you want to DIY, then read some books on investing into stocks, bonds etc. If you want to pay others to do it, then read some books about selecting funds/advisors.

To me money for the stock market are "extra money" for at least 5 years in the market. Of course the longer the better. The gist word is "extra". i hope i really can practise what i say even now in my de-accumulation or distribution phase.
It is getting harder and harder for me as i draw down my accumulation. I found that i spend more not less now. Too much free time to kill needs to spend more on leisure activities. In fact we found that we spend more now than when we are in the rat race. The rat race took out most of our time and energy but increased our accumulations.

My wife always says after all the accumulations, if not now when?
When we are completely toothless?
When we are on the wheel chair?
When we never see the next sunrise?
Ah!........ when is our actual day of returning the IC?
When we really know, there is no when then.

Remember what i say , "Extra" is the magic when you can do wonders with your money. If not you better save up till you have the "Extra".

My 2 cents.