Best Return For A Years Investment

[DavidOxon]

Hi guys . . me yet again.

I'm looking for a reasonably safe investment for my nest egg for a year

at which point I have new decisions to make!

I can get about 6.5% offshore with UK banks...should I just go for this

or would you recommend something else?

I've had a look at Aberdeen but can't work out what that's all about at all!

They don't seem to do anything by % return that I could find!

Thanks

david

[ronz28]

I focus on preservation of capital when i have a short time horizon like one year. It appears we are going into a recession now so returns will be difficult at best. The higher the return the greater the risk of loss of principal.

[chiangmaibruce]

Hi. You don't say which Aberdeen web site you were looking at but if it was Thailand (aberdeen-asset.co.th) then go "english" -> "funds and prices" -> "performance".

As has been stated, however, if you will need your funds (plus a return) in twelve months then it might not be prudent to invest in shares (either directly or indirectly - via a managed fund). And that goes double if you are an investment novice (and triple given current economic circumstances).

I would suggest go for a low risk, low effort but reasonable return option similar to what you have mentioned. I believe for example that in Australia now you can get 7% bank guaranteed and available on-call via one of those internet-based accounts. That's looking pretty darn good at this point in time!

- CB

[wasabi]

Any links to these Australian banks?

[Irene]

This is a bad time to look for quick return within one year. The world is now in a topsy-turvy state. Now all experts starting from Bernanke feel like a novice. Like others in this thread, it is best to be concerned with ways to preserve your capital. This is the time that routine warning of "past results do not guarantee future results" makes most sense because the financial world is not the same as before. As a seasoned investor in stocks and not having much faith in fixed-income investment, I am now thinking of the reverse and take leave from stocks for one year.

I am looking forward to the information on the links to Australia. Thanks in advance.

[kangeroo]

well whats wrong with 7% in a term deposite for one year 500,000 aus at 7% = 35 aus per year less a few fees , the only problem you then have is tax surely there are some ways of getting around that legaly in some way . eg negatively geared property or money received from term deposite payed into some sort of pension .

cheers.

[thaipete]

Hi guys . . me yet again.

I'm looking for a reasonably safe investment for my nest egg for a year

at which point I have new decisions to make!

I can get about 6.5% offshore with UK banks...should I just go for this

or would you recommend something else?

I've had a look at Aberdeen but can't work out what that's all about at all!

They don't seem to do anything by % return that I could find!

Thanks

6.5% is not bad I was getting 8% of shore Isle of man but 5 year investment can forward details, I am now getting 4.5 % in a Thai bank

david

[ray23]

4.5 % in Thailand one year where?

[BEENTHEREDONETHAT]

You might consider New Zealand bank term deposit. Pays 8.9% for 1 year and tax is 2% of the interest. The downside is, you have to go to New Zealand to open the account. You have exchange rate fluctuations that can be either good or bad. They will not give you a credit card (at least the bank we deal with won't). When we TT money from there to our bank in HH it typically takes a few hours to arrive. Been with them for 6 or 7 years and have no complaints.

[zorro1]

Any links to these Australian banks?

www.stgeorge.com.au 7.15%

[sweetchariot]

Hi guys . . me yet again.

I'm looking for a reasonably safe investment for my nest egg for a year

at which point I have new decisions to make!

I can get about 6.5% offshore with UK banks...should I just go for this

or would you recommend something else?

I've had a look at Aberdeen but can't work out what that's all about at all!

They don't seem to do anything by % return that I could find!

Thanks

david

Aberdeen are an aseet management co. Don't even consider equity investment for such a short term, or even gilt/ bond funds as you will be lucky to recoup the initial charges.

Some of the Aussie/ NZ term deposits sound interesting, not sure on their availability to foreigners though.

Cash only investments for you, too short term for anything else.

PS 4.5% in LOS is b.s.

[BEENTHEREDONETHAT]

The NZ rate is not available if you live in NZ. Essentially it is to bring in foreign $$. I goofed though, have only been with them since 2002, at that time the exchange rate to US$ was .4644 today it is .7559. So my gain on the exchange rate has been nice.

[fletchsmile]

Hi guys . . me yet again.

I'm looking for a reasonably safe investment for my nest egg for a year

at which point I have new decisions to make!

I can get about 6.5% offshore with UK banks...should I just go for this

or would you recommend something else?

I've had a look at Aberdeen but can't work out what that's all about at all!

They don't seem to do anything by % return that I could find!

Thanks

david

Some key questions you need to ask yourself and answer first:

1) What are you going to use the money for in one year's time? where? and in what currency?

2) How much money do you have now compared to what you need in one year's time?

3) What do you mean by "reasonably safe"? Does that mean you cannot accept less than you started with? or are you able to take small risks? No investment is risk free.

1) As you mentioned UK and we're on a Thai forum, I guess either GBP or THB. Unless you have views on AUD or NZD, in that case you probably don't want to consdier those currencies. They will bring you currency risk. Yes they pay attractive interest rates, but if you are not going to use Australian dollars or New Zealand dollars in 1 year time there is a risk that your capital value changes. This could be up or down. USD lost value significantly this year. What would you do if NZD or AUD dropped 10%, 15% over 1 year? Your purchasing power might decrease if you are going to use another currency outsde your "normal " ones. Yes you might gain or it might stay the same but you could lose, if the exchange rate moves unfavourably. There will also be transaction costs to convert into a foreign currency then back again

2) If you have more than enough now, you could perhaps take a little risk. If you have less, then either you can't afford much risk, or you try and use this to generate higher return, but also higher risk

3) This will be key to deciding what to do. You must look a both risk and reward. What return you require vs what risk

The above may sound vague. But for your "best" solution you need to answer a lot more questions. These are just 3. There is also not enough information in your OP for anyone to tell you what is best. Suggest a few ideas maybe.

On a couple of general notes:

- Stick to your usual currencies, and the ones you need. Otherwise you risk losing money due to currency risk, exchange rate fluctuations and transaction costs.

- Mutual funds I would look at usually on a three to five year time frame. These give equity/other market risks. Potentially higher returns, but higher rewards. Wouldnt usually suggest them for a one year time frame. But if you can afford to lose some capital, you might consider them. eg you'd be happy with a 20% gain. Could you take a 20% loss?

- One year time frame usually suggests mainly cash, but not always

- A combination of various things may actually be better, by spreading and diversifying your risk. eg large amount in cash, small amount in diff currencies, perhaps small amount in others etc

Edited November 18, 2007 by fletchthai68

[sweetchariot]

Hi guys . . me yet again.

I'm looking for a reasonably safe investment for my nest egg for a year

at which point I have new decisions to make!

I can get about 6.5% offshore with UK banks...should I just go for this

or would you recommend something else?

I've had a look at Aberdeen but can't work out what that's all about at all!

They don't seem to do anything by % return that I could find!

Thanks

david

Some key questions you need to ask yourself and answer first:

1) What are you going to use the money for in one year's time? where? and in what currency?

2) How much money do you have now compared to what you need in one year's time?

3) What do you mean by "reasonably safe"? Does that mean you cannot accept less than you started with? or are you able to take small risks? No investment is risk free.

1) As you mentioned UK and we're on a Thai forum, I guess either GBP or THB. Unless you have views on AUD or NZD, in that case you probably don't want to consdier those currencies. They will bring you currency risk. Yes they pay attractive interest rates, but if you are not going to use Australian dollars or New Zealand dollars in 1 year time there is a risk that your capital value changes. This could be up or down. USD lost value significantly this year. What would you do if NZD or AUD dropped 10%, 15% over 1 year? Your purchasing power might decrease if you are going to use another currency outsde your "normal " ones. Yes you might gain or it might stay the same but you could lose, if the exchange rate moves unfavourably. There will also be transaction costs to convert into a foreign currency then back again

2) If you have more than enough now, you could perhaps take a little risk. If you have less, then either you can't afford much risk, or you try and use this to generate higher return, but also higher risk

3) This will be key to deciding what to do. You must look a both risk and reward. What return you require vs what risk

The above may sound vague. But for your "best" solution you need to answer a lot more questions. These are just 3. There is also not enough information in your OP for anyone to tell you what is best. Suggest a few ideas maybe.

On a couple of general notes:

- Stick to your usual currencies, and the ones you need. Otherwise you risk losing money due to currency risk, exchange rate fluctuations and transaction costs.

- Mutual funds I would look at usually on a three to five year time frame. These give equity/other market risks. Potentially higher returns, but higher rewards. Wouldnt usually suggest them for a one year time frame. But if you can afford to lose some capital, you might consider them. eg you'd be happy with a 20% gain. Could you take a 20% loss?

- One year time frame usually suggests mainly cash, but not always

- A combination of various things may actually be better, by spreading and diversifying your risk. eg large amount in cash, small amount in diff currencies, perhaps small amount in others etc

Nobody in their right mind would recommend mutuals for 1 year. Please ignore this poster, he has nothing to say, and says far too much of it.

[Nickthegreek]

4.5 % in Thailand one year where?

Ray,

I recently opened a fund with Siam commercial bank and although i am no expert,I was tld that I will receive 4.5%,it is amanaged fund that goes through the bank of Ayuddhaya.I have not checked to see if its the same,if I am honest I opened it a year ago.

[ray23]

Thanks I was just curious SCB was offering the same rates for 90 days.

I wish I had a crystal ball so I would know when the market has really bottomed out, you know buy low sell high

[fletchsmile]

Hi guys . . me yet again.

I'm looking for a reasonably safe investment for my nest egg for a year

at which point I have new decisions to make!

I can get about 6.5% offshore with UK banks...should I just go for this

or would you recommend something else?

I've had a look at Aberdeen but can't work out what that's all about at all!

They don't seem to do anything by % return that I could find!

Thanks

david

Some key questions you need to ask yourself and answer first:

1) What are you going to use the money for in one year's time? where? and in what currency?

2) How much money do you have now compared to what you need in one year's time?

3) What do you mean by "reasonably safe"? Does that mean you cannot accept less than you started with? or are you able to take small risks? No investment is risk free.

1) As you mentioned UK and we're on a Thai forum, I guess either GBP or THB. Unless you have views on AUD or NZD, in that case you probably don't want to consdier those currencies. They will bring you currency risk. Yes they pay attractive interest rates, but if you are not going to use Australian dollars or New Zealand dollars in 1 year time there is a risk that your capital value changes. This could be up or down. USD lost value significantly this year. What would you do if NZD or AUD dropped 10%, 15% over 1 year? Your purchasing power might decrease if you are going to use another currency outsde your "normal " ones. Yes you might gain or it might stay the same but you could lose, if the exchange rate moves unfavourably. There will also be transaction costs to convert into a foreign currency then back again

2) If you have more than enough now, you could perhaps take a little risk. If you have less, then either you can't afford much risk, or you try and use this to generate higher return, but also higher risk

3) This will be key to deciding what to do. You must look a both risk and reward. What return you require vs what risk

The above may sound vague. But for your "best" solution you need to answer a lot more questions. These are just 3. There is also not enough information in your OP for anyone to tell you what is best. Suggest a few ideas maybe.

On a couple of general notes:

- Stick to your usual currencies, and the ones you need. Otherwise you risk losing money due to currency risk, exchange rate fluctuations and transaction costs.

- Mutual funds I would look at usually on a three to five year time frame. These give equity/other market risks. Potentially higher returns, but higher rewards. Wouldnt usually suggest them for a one year time frame. But if you can afford to lose some capital, you might consider them. eg you'd be happy with a 20% gain. Could you take a 20% loss?

- One year time frame usually suggests mainly cash, but not always

- A combination of various things may actually be better, by spreading and diversifying your risk. eg large amount in cash, small amount in diff currencies, perhaps small amount in others etc

Nobody in their right mind would recommend mutuals for 1 year. Please ignore this poster, he has nothing to say, and says far too much of it.

Try re-reading. Some key highlights:

Mutual funds I would look at usually on a three to five year time frame.... Wouldnt usually suggest them for a one year time frame. .... One year time frame usually suggests mainly cash, but not always

I would have thought it pretty clear to most people that I was saying, usually mutually funds are not suitable over one year, but , if looking 3-5 years they may be. There are exceptions tho', and occasions where one year might be appropriate hence I wrote "usually".

Edited November 18, 2007 by fletchthai68

[fletchsmile]

Aberdeen are an aseet management co. Don't even consider equity investment for such a short term, or even gilt/ bond funds as you will be lucky to recoup the initial charges.

Some of the Aussie/ NZ term deposits sound interesting, not sure on their availability to foreigners though.

Cash only investments for you, too short term for anything else.

PS 4.5% in LOS is b.s.

You can open AUD and NZD accounts with most banks in Singapore/HK etc. You seriously need to consider currency risk, and exchange rate transaction costs before doing so. eg you might get an extra 2% in interest. But transaction costs eat into this, eg bid-offer spread on conversion from say GBP>NZD and back again after one year, or if the NZD plummets in value you could lose out. You could also gain tho'.

eg Start of 2007: THB interest rates 1%, USD interest rates 4%. USD looks better. Ask anyone now, who has held USD since 1 Jan, woud they have preferred THB with hindsight? USD has devalued vs THB by more than 3%, so people with money in USD have been hurting compared to THB, despite the little bit of extra interest

Don't forget also interest rates go up and down. If New Zealand cut it's country interest rates by say 1%. That means:

a) You get less interest

b ) Value of NZD may decrease as it is less attractive because of lower yields

Rise has opposite effect.

BTW Indonesia Rupiah pays higher rates than either AUD, NZD. I wouldn't encourage you to use it tho.

Message: don't just chase interest rates. Watch the currency risk

Edited November 18, 2007 by fletchthai68

[chiangmaibruce]

Me again. Another Australian link www.abetterdeal.com.au (Bank of Western Australia)

7.2% for the first 12 months and then it drop a little ... full details on the site

- C.B

[cmsally]

You need to be an Australian resident to open an acct there (as far as I know).

The alternatives of AUS$ in an offshore acct in say for example Singapore,

have interest rates more similar to UK pound of 6-6.5%

As a Brit operating in THB and UKpound then the interest rates don't give any benefit, you would need to be counting on the AUS$ gaining against the pound.

Of course if you are dual Aus/Brit national you could open an onshore acct but would need to check that you meet all the requirements to receive interest before tax and again take a bet on the currency.

[BEENTHEREDONETHAT]

fletchthai68

You can open a account in Australia with (for example) ANZ bank but it has nothing to do with ANZ New Zealand. Question being able to open a ANZ (New Zealand account) in Singapore.

If you go into Australian ANZ and try to access a New Zealand ANZ account you are out of luck they won't do it, or can't.

[LindsayBKK]

Banking Link

[junkofdavid2]

It's impossible to accurately predict currency fluctuations over the long term.

What I would do is to simply divide my money into forths, and then get the best interest rate in four significant currencies.

Example:

1/4 in NZD because it has the highest interest rate

1/4 in USD (at USD's highest possible interest rate) because USD is the world's "base" currency

1/4 in THB (at the highest THB interest rate available) because I live in Thailand.

1/4 in Home Country currency (just in case I go home someday)

That way I get the best possible interest rates, and not worry about currency fluctuation because when one of the 4 goes down, the other(s) go(es) up.

I may also opt to not keep any significant savings in THB (and just keep 1/3-1/3-1/3 in NZD-USD-Home) because my earning capacity is in THB, so that could account as a hedge in itself.

That's just my opinion... feel free to debunk it or give a better idea; I'd be interested.

Edited November 18, 2007 by junkofdavid2

[JimsKnight]

I already just use the Ice Save on-line account 6.13% per month with options to transfer the interest made into a nominated account (like a N/W account for example) haven't seen any alternatives worth considering (yet )

[BEENTHEREDONETHAT]

It's impossible to accurately predict currency fluctuations over the long term.

What I would do is to simply divide my money into forths, and then get the best interest rate in four significant currencies.

Example:

1/4 in NZD because it has the highest interest rate

1/4 in USD (at USD's highest possible interest rate) because USD is the world's "base" currency

1/4 in THB (at the highest THB interest rate available) because I live in Thailand.

1/4 in Home Country currency (just in case I go home someday)

That way I get the best possible interest rates, and not worry about currency fluctuation because when one of the 4 goes down, the other(s) go(es) up.

David

That sounds pretty reasonable to me. I'm too lazy to invest in the stock market as I don't want to have to keep up with what is going on. I would rather put it in term deposits and pretty much forget about it until you need some. I lean towards not only having it in several countries but also multiple banks. The only time the exchange rate really matters is when you want to move it to another country. Like you say then you can choose which one you move it from for the best exchange rate at that time.

[Naam]

4.5 % in Thailand one year where?

I recently opened a fund with Siam commercial bank and although i am no expert,I was tld that I will receive 4.5%,it is amanaged fund that goes through the bank of Ayuddhaya. I have not checked to see if its the same, if I am honest I opened it a year ago.

the money market fund SCB offers is yielding nowadays a wee bit over 3%, tendency negative.

[junkofdavid2]

Most important thing is that you DO save, and at the highest interest rate possible.

If you save just 79 THB per day (553 THB per week) and invest it at 6% interest p.a., it will grow to 1 Million Baht in 19 years.

Try this cool calculator:

http://www.finishrich.com/free_resources/lattecalculator.php

In 29 years it becomes 2.5 Million.

In 35 years it becomes 3.4 Million

In 39 years it becomes 4.4 Million

That may not seem like much, and it may seem like a long time... but what this proves is that even in a poor country like Thailand, a poor house-maid can "automatically" retire as a (THB) millionaire.

By the way, 4.4 Million earning 6% interest per annum translates to 22,000 THB per month in interest just sitting her arse doing nothing. That's a big pension for a maid to retire on in Thailand!

Edited November 18, 2007 by junkofdavid2

[BEENTHEREDONETHAT]

Most important thing is that you DO save, and at the highest interest rate possible.

If you save just 79 THB per day (550 THB per week) and invest it at 6% interest p.a., it will grow to 1 Million Baht in 19 years.

Try this cool calculator:

http://www.finishrich.com/free_resources/lattecalculator.php

Hey thats pretty cool.

[fletchsmile]

fletchthai68

You can open a account in Australia with (for example) ANZ bank but it has nothing to do with ANZ New Zealand. Question being able to open a ANZ (New Zealand account) in Singapore.

If you go into Australian ANZ and try to access a New Zealand ANZ account you are out of luck they won't do it, or can't.

What I was saying is if you want the higher rates New Zealand Dollars currency offers (NZD) most banks in Singapore offer NZD accounts. Or if you want an account in Australian Dollars (AUD) again most banks do.

Wasn't commenting on ANZ or any other bank in particular. Though there are some banks that will sometimes help you open an account in a branch in another country.

[tingtong]

Most important thing is that you DO save, and at the highest interest rate possible.

If you save just 79 THB per day (553 THB per week) and invest it at 6% interest p.a., it will grow to 1 Million Baht in 19 years.

Try this cool calculator:

http://www.finishrich.com/free_resources/lattecalculator.php

In 29 years it becomes 2.5 Million.

In 35 years it becomes 3.4 Million

In 39 years it becomes 4.4 Million

That may not seem like much, and it may seem like a long time... but what this proves is that even in a poor country like Thailand, a poor house-maid can "automatically" retire as a (THB) millionaire.

By the way, 4.4 Million earning 6% interest per annum translates to 22,000 THB per month in interest just sitting her arse doing nothing. That's a big pension for a maid to retire on in Thailand!

Nine, really nice. but once you invest, better get the equation rigth. this example miss some basic thing.

the first is this thai maid, who in most cases makes less then 200 baht a day, hardly get employed till age 60...I wouldnt think she would get to save that much. but love the maid idea. just cant see that happen often.

the second is even as the numbers sound so good for first look, you only compound interest, and never count inflation. unfortunate to us, there is. Right now, they talk around 2% here...that is, the official numbers. however, when u buy the bus ticket which 2 years ago was 5 baht to 8, buy the gasoline 30 insteed 30, even a fried rice for 30, up from 25....that is inflation right now much above your 6% return.

so, the real value in 39 years might be far from the current 4.4 million...