My 500K can only generate 12-15K yield per annum due to the dismal investment enviroment..If the economy really suffer a depression and I can't rent out my 2 properties, it will be difficult even to protect my cash principal.
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Rainy Days are here: How long can your saving last?
- Thread starter lifeafter41
- Start date
My 500K can only generate 12-15K yield per annum due to the dismal investment enviroment..If the economy really suffer a depression and I can't rent out my 2 properties, it will be difficult even to protect my cash principal.
For me my savings can last me for around 700months if I spend around 1k a month. Then there is my pension that will kick in around 5years time and rental from my 2nd house roughly I can last until I die if nothing really bad happens to me. 
For me my savings can last me for around 700months if I spend around 1k a month. Then there is my pension that will kick in around 5years time and rental from my 2nd house roughly I can last until I die if nothing really bad happens to me.
Seems a fair number of forumers here have substantial savings, with 2nd or 3rd property to boot. I guess it's not a rainy day for them, but another opportunity.
How
Interest rates in Spore are so damn low. :(
For the past 20 years, all my cash deposits have been in OZ/NZ dollars and the yield has always been excellent. Give ANZ a call.
Exchange rates have fluctuated but that doesn't affect those who are in it for the long haul as one can always choose a period where the exchange rates are favourable for further capital gain.
Was just going through the ANZ website, minimum amount is AUD250k. Not many person will have that kind of money.
I don't know where you got that figure from. 99.9% of banks will happily place term deposits of $5000.
However, the greater the amount, the better the interest.
Now I am unemployed with only a net saving of $4,000 inside my POSB accounts. I don't know how long can I last for that small amount of saving as I have insurance policies & mobile bills to pay. Not to forget I need to eat & pay transportation to look for jobs :(
How
How
Bro, you got to be careful of advising those who are overseas. AUD got devalued by 30% 3 mths ago against SGD.
Expat Australians working in Singapore and Singaporeans who took SGD denominated housing loans for properties in Australia were asked to top up by up to 30% the equity, some of them more than 100K.
Those who had ACU accounts in AUD lost 30% of their principal.
Its preferable to do all banking within the same country until your arbitrage skills are good. In AUD case, it fell practically overnight.
Now I am unemployed with only a net saving of $4,000 inside my POSB accounts. I don't know how long can I last for that small amount of saving as I have insurance policies & mobile bills to pay. Not to forget I need to eat & pay transportation to look for jobs :(
How
Dont worry bro, in the same boat, i was fired last week. hope u can sort out soon....let support each other.
easy lar.. get retrenched... i will rent out my flat for 2.5k and spend in thai or msia.. :p
You are correct, saw the one that was minimum amount for the highest interest rate, ie 250k for the bank highest rate on the particular currency.
Now I am unemployed with only a net saving of $4,000 inside my POSB accounts. I don't know how long can I last for that small amount of saving as I have insurance policies & mobile bills to pay. Not to forget I need to eat & pay transportation to look for jobs :(
How
If you are single, 4k can last for a while, if you are with family and kids, then it could be a big problem for you.
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Read http://www.sammyboy.com/showpost.php?p=149813&postcount=26
I was advising someone who has SGD500k sitting in the bank.
Exchange rates are not a factor if one is looking at yields over the long term. It has worked for me over the past 20 years.
Exchange rates fluctuate all the time but they affect only conversions not yields. Funds that aren't needed as working capital can therefore safely be parked in a high yielding currency. The Japs have been doing it for ages.
There will always be periods where exchange rates are favourable for
a) Buying more OZ/NZ dollars with SGD (as is the case now)
b) Converting OZ/NZ dollars back to SGD (some time in the future).
I have made money both from yields and from exchange rate movements.
Agree on the long term where the principal amt is not expected to be used partially or in whole.
One factor to consider is that at the time of investment in that intended currency, placement should not be done close to the historical high but at the operating median or if lucky historical low. For AUD, the Sing Govt (which they can manipluate to a large extent) appears to favour 119 as the median. The High is 133 and low is .99 (newbies - google to get historical on AUD/SGD currency pair)
This is an opportune time to do so. It looks like it will stay that way for a while.
I guess one must stay cool at time when the exchanges move against one's own currency, ie AUD dollar dropped 30% against Sing dollar, in just a matter of months, despite the lure of higher yields.
There's no need to stay cool. Just do the obvious!
If something you want is suddenly going for a 30% discount, what do you do? You BUY of course!:p Now's therefore a great time to buy OZ dollars and enjoy a 400 to 500% gain in yield vs the SGD All currencies trade within a historic range. eg the NZD typically trades between 0.50 and 0.75 against the USD with some overshoot at either end. At one end, you start buying while at the other, you start selling.
As long as you use funds you don't need at short notice, chances of losing money in the long term are remote.
OZ dollars are a much better bet over the long term for the simple reason that the country is resource rich and will continue to be so for the next 20 to 30 years. On the other hand, Singapore could easily become a banana republic. It has no natural resources and the PAP won't last much longer.
Once the PAP loses its grip on power, the true state of Sinkie finances will come to light. I wouldn't be surprised if the country ended up like Satyam. The SGD will then go the way of Satyam stock!
I have enough reserves to construct another island.
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