What To Do With 300K

[potandpan]

Hi there

I'm looking for ideas of what to do with 300k baht that the wife and I will have spare after we return to the UK.

It's currently sitting in Kasikorn Bank and any investments will be in the wife's name.

We don't need to touch the money for at least six years.

We were thinking about a fixed rate deposit account but would also consider shares if we could find an Investment or Unit Trust with reasonable charges (or is 300k to small for that?)

Thanks in advance for any answers

[sulasno]

buy 11 baht of gold and sell it after 6 years;

the returns should be better than the interest from the banks

[MJo]

buy 11 baht of gold and sell it after 6 years;

the returns should be better than the interest from the banks

Or lottery tickets, you should win something.

Gold is at all time high due financial crisis, stocks are low. Just figure out what will happen when situation is back to normal in few years time.

[Darrel]

buy 11 baht of gold and sell it after 6 years;

the returns should be better than the interest from the banks

Nah. Magic beans, every time.

[Naam]

buy 11 baht of gold and sell it after 6 years;

the returns should be better than the interest from the banks

and keep it with your in-laws for safeguarding. taking it to U.K. is too risky.

[Dancealot]

buy 11 baht of gold and sell it after 6 years;

the returns should be better than the interest from the banks

and keep it with your in-laws for safeguarding. taking it to U.K. is too risky.

Agreed, in laws can always be trusted. The gold is a very good investment. You have to weigh your options and choose which one has the least amount of risk.

Because there is always risk

[fletchsmile]

Obviously there's a lot of factors to be taken into account, including returns you're looking for risk tolerance etc etc. As the info you've given is minimum, and obviously know nothing about you, below is only a suggestion:

Put 1/5th in each of the following:

Aberdeen Growth Fund = Thai Equities

Aberdeen Global Emerging Markets Fund = Emerging Market Equities

Aberdeen Emerging Opportunities Bond Fund = Well diversified emerging markets bond fund

MFC International Gold Fund or TMB Gold Fund = unit trusts that give expsoure to gold price

Cash = probably a limited access account, eg only withdraw x times per month. Will give a reasonable rate and a bit more flexible than fixed deposit

That would give a reasonable spread of risk and return across asset classes. Note: there are lots of other good fund management houses, eg ING. I suggested Aberdeen as they offer a reasonable range and cut down number of people to deal with. they don't do a gold fund tho'

http://www.aberdeen-asset.co.th/aam.nsf/thailand/fundinformationfactsheets

http://www.mfcfund.com/php/eng/navdailyo_t.php

I'd add, we hold all 4 funds above on behalf of our daughters for their future, and timelines at least 5 years

If only picking one I'd choose Aberdeen Growth or perhaps Aberdeen Global Em Markets. I've held Aberdeen Growth in Thailand for over 10 years. It's 5 year return is around 60%+ and 10 year about 590%. These include difficult times in 2007/8 and this year. It's averaged nearly 20% p.a. for me after charges. I don't expect that in future tho, and something like 60% more reasonable for 5 years. {Figures are from my own record, but their website should show similar} Worst ever year down around 40%, best ever up 100% - so yes volatile, although I can't ever recall it having lost money over a 5 year period, it may not be suited if you want your money before that. Hence suggestion to diversify with some lower risk, lower reward funds such as other countries equities, bonds and gold funds.

Changes are around 1-1.5% initial fee and similar per annum, but check links above.

As I say, only suggestions, and yes have already put my own money where my mouth is and been happy with them for several years

Edited December 8, 2011 by fletchsmile

[Dancealot]

http://www.bloomberg.com/apps/quote?ticker=NAKGTHA:TB

If you look short term they actually have a zero percent growth but then 5 year graph show remarkable similarities to the value of gold...

I think paying the percentages is a calculated risk but should be taken into discard especially in the fund managing business.

I'd rather have the gold in my hands hereby eliminating all in-between parties

[givenall]

buy 11 baht of gold and sell it after 6 years;

the returns should be better than the interest from the banks

Sulasno beat me to this

[wolfmuc]

Very interesting post. Thank you 'fletchsmile'. -

Replying to the OP: Hi potandpan,

I've sent you a PM. - If you're signed in go to the little arrow next to your name and then to 'Messenger'.

Regards,

Wolfmuc.

[Hooters]

"We don't need to touch the money for at least six years."

racking my brain how figured this? You would have to be the best accountant on the planet to work that out

its not much over a 6 year period

[fletchsmile]

http://www.bloomberg.com/apps/quote?ticker=NAKGTHA:TB

If you look short term they actually have a zero percent growth but then 5 year graph show remarkable similarities to the value of gold...

I think paying the percentages is a calculated risk but should be taken into discard especially in the fund managing business.

I'd rather have the gold in my hands hereby eliminating all in-between parties

Thanks for posting the link that supports my numbers. Just in case people are not familiar with the BBG screens. The 3 year and 5 year figures they show are annualised figures, i.e screen shows 10.6% per annum for 5 years (I said 60% total and 1.106^5 compounded is indeed that) and 40% pa for 3 years (price was 24.38 on 8 Dec08 so yes now worth 2.7 times) Over 3 years gold is up similar. 1 year return of 9% on equities is OK in this market if one understands it is part of a portfolio

Personally I wouldn't put all my eggs in one basket, although I understand you like gold at the moment. Gold had 20 years of negative returns in the 80's. Should we hit a similar period OP would have difficulties and lose serious money, and wait a decade or so for recovery. Sure the 2000's are looking good for gold, but for how long. While people think gold looks good now, who is to say 5 years from now.

Given gold has potential is why I suggested a gold fund as one of the 4 funds. Generally the cycles for gold, bonds, equities and cash as "the best investment" differ, and none is the best all the time or every year.

Edited December 8, 2011 by fletchsmile

[potandpan]

Hi guys, thanks for the replies

regarding gold, the price is a bit rich for me at the moment (but I also thought that when it was $1000 an ounce). And as mentioned there's the question of where to store it.

Fletchsmile, thank you very much for your detailed reply, I need to do a bit of research on the info you've given.

Hooters, please don't rack your brain to much I worry you will get a headache, all I can tell you is that I (or should I say the wife, it's her money) am happy and able to not touch the money for at least six years, no accountant needed (We do have cash and work in the UK).

Regards to all..........

[Canada]

300 k won't buy much gold so you could just store it in your pocket.

It will buy about 12 baht.....which will be about the size of a cigarette lighter plus a little bit. If you buy 99.99 % rather than 96.5, it will be more expensive, but easier to unload overseas. Then you would only get the cigarette lighter size piece without the little bit....easier to hang on to.

[92302]

Obviously there's a lot of factors to be taken into account, including returns you're looking for risk tolerance etc etc. As the info you've given is minimum, and obviously know nothing about you, below is only a suggestion:

Put 1/5th in each of the following:

Aberdeen Growth Fund = Thai Equities

Aberdeen Global Emerging Markets Fund = Emerging Market Equities

Aberdeen Emerging Opportunities Bond Fund = Well diversified emerging markets bond fund

MFC International Gold Fund or TMB Gold Fund = unit trusts that give expsoure to gold price

Cash = probably a limited access account, eg only withdraw x times per month. Will give a reasonable rate and a bit more flexible than fixed deposit

That would give a reasonable spread of risk and return across asset classes. Note: there are lots of other good fund management houses, eg ING. I suggested Aberdeen as they offer a reasonable range and cut down number of people to deal with. they don't do a gold fund tho'

http://www.aberdeen-...ationfactsheets

http://www.mfcfund.c...navdailyo_t.php

I'd add, we hold all 4 funds above on behalf of our daughters for their future, and timelines at least 5 years

If only picking one I'd choose Aberdeen Growth or perhaps Aberdeen Global Em Markets. I've held Aberdeen Growth in Thailand for over 10 years. It's 5 year return is around 60%+ and 10 year about 590%. These include difficult times in 2007/8 and this year. It's averaged nearly 20% p.a. for me after charges. I don't expect that in future tho, and something like 60% more reasonable for 5 years. {Figures are from my own record, but their website should show similar} Worst ever year down around 40%, best ever up 100% - so yes volatile, although I can't ever recall it having lost money over a 5 year period, it may not be suited if you want your money before that. Hence suggestion to diversify with some lower risk, lower reward funds such as other countries equities, bonds and gold funds.

Changes are around 1-1.5% initial fee and similar per annum, but check links above.

As I say, only suggestions, and yes have already put my own money where my mouth is and been happy with them for several years

What a load of waffle mate sorry, it's only the equivalent of 6 grand sterling.

Just buy some gold easy. Here is the last 10 years chart...

[Bpuumike]

buy 11 baht of gold and sell it after 6 years;

the returns should be better than the interest from the banks

+1

[Nisa]

"We don't need to touch the money for at least six years."

racking my brain how figured this? You would have to be the best accountant on the planet to work that out

its not much over a 6 year period

Or they simply are not going to be back in Thailand for 6-years.

[gk10002000]

Get the money out of Thailand and into your hands as soon as possible. Leaving 300k Baht in Thailand in your wife's name in a foreign bank does not sound like a good idea.

Forget the gold idea. gold is very high right now. why take the chance its value will go down? 300k baht is about 10,000 USD. Let me use Dollars just for a baseline. One can get many tax free municipal bonds in the USA either in funds or individual bonds that pay a very safe 4.5% rate. Nothing great, but it is better than nothing. The interest buys a month's worth of groceries.

[fletchsmile]

Obviously there's a lot of factors to be taken into account, including returns you're looking for risk tolerance etc etc. As the info you've given is minimum, and obviously know nothing about you, below is only a suggestion:

Put 1/5th in each of the following:

Aberdeen Growth Fund = Thai Equities

Aberdeen Global Emerging Markets Fund = Emerging Market Equities

Aberdeen Emerging Opportunities Bond Fund = Well diversified emerging markets bond fund

MFC International Gold Fund or TMB Gold Fund = unit trusts that give expsoure to gold price

Cash = probably a limited access account, eg only withdraw x times per month. Will give a reasonable rate and a bit more flexible than fixed deposit

That would give a reasonable spread of risk and return across asset classes. Note: there are lots of other good fund management houses, eg ING. I suggested Aberdeen as they offer a reasonable range and cut down number of people to deal with. they don't do a gold fund tho'

http://www.aberdeen-...ationfactsheets

http://www.mfcfund.c...navdailyo_t.php

I'd add, we hold all 4 funds above on behalf of our daughters for their future, and timelines at least 5 years

If only picking one I'd choose Aberdeen Growth or perhaps Aberdeen Global Em Markets. I've held Aberdeen Growth in Thailand for over 10 years. It's 5 year return is around 60%+ and 10 year about 590%. These include difficult times in 2007/8 and this year. It's averaged nearly 20% p.a. for me after charges. I don't expect that in future tho, and something like 60% more reasonable for 5 years. {Figures are from my own record, but their website should show similar} Worst ever year down around 40%, best ever up 100% - so yes volatile, although I can't ever recall it having lost money over a 5 year period, it may not be suited if you want your money before that. Hence suggestion to diversify with some lower risk, lower reward funds such as other countries equities, bonds and gold funds.

Changes are around 1-1.5% initial fee and similar per annum, but check links above.

As I say, only suggestions, and yes have already put my own money where my mouth is and been happy with them for several years

What a load of waffle mate sorry, it's only the equivalent of 6 grand sterling.

Just buy some gold easy. Here is the last 10 years chart...

So what's wrong with splitting 6k into 5 amounts of 1.2k each to diversify? One of the positives of the Thai mutual fund industry is you can start with as little as 100 pounds in most funds. To some people 6k is a lot. To others not

And your suggestion on buying gold in practice... What exactly are you recommending/ format etc? THB 300k is not quite enough to buy 6 oz of gold at current spot rates. Where do they keep it etc? Sounds to me like someone just jumping on the gold bandwagon, and picking an investment based on hindsight. Suggest you Google and post that graph from 1980 up to 2002, to help you understand the benefits of diversifying This type of approach has worked well for me in 80's 90's 2000's and this decade.

[Scott123]

Get the money out of Thailand and into your hands as soon as possible. Leaving 300k Baht in Thailand in your wife's name in a foreign bank does not sound like a good idea.

Forget the gold idea. gold is very high right now. why take the chance its value will go down? 300k baht is about 10,000 USD. Let me use Dollars just for a baseline. One can get many tax free municipal bonds in the USA either in funds or individual bonds that pay a very safe 4.5% rate. Nothing great, but it is better than nothing. The interest buys a month's worth of groceries.

4.5% rate? You are looking into 10+ years term !!

[GuestHouse]

Leave it your wife's K-Bankaccount, it will be a lot convenient for all concerned when someone comes up with and urgent need for it.

[thrilled]

I would buy stock that pays 5%-6% dividends companies like PM ,MO ,KMP ,KMB CVX,MCD just to name A few.

[teatree]

<br />Get the money out of Thailand and into your hands as soon as possible.  Leaving 300k Baht in Thailand in your wife's name in a foreign bank does not sound like a good idea.  <br /><br />Forget the gold idea.  gold is very high right now.  why take the chance its value will go down?  300k baht is about 10,000 USD.  Let me use  Dollars just for a baseline.  One can get many tax free municipal bonds in the USA either in funds or individual bonds that pay a very safe 4.5% rate.  Nothing great, but it is better than nothing.  The interest buys a month's worth of groceries.<br />

<br /><br /><br />

The reason why gold is at all time highs is the same reason why gold will continue to rise. Dollar devaluation is not going to go away and is just going to get worse.

I doubt 4.5% will even keep up with inflation once hyper-inflation kicks in.

What happened recently with MF Global should be a warning sign for everyone to get their money out of paper.

[ExpatJ]

Hi guys, thanks for the replies

regarding gold, the price is a bit rich for me at the moment (but I also thought that when it was $1000 an ounce). And as mentioned there's the question of where to store it.

Fletchsmile, thank you very much for your detailed reply, I need to do a bit of research on the info you've given.

Hooters, please don't rack your brain to much I worry you will get a headache, all I can tell you is that I (or should I say the wife, it's her money) am happy and able to not touch the money for at least six years, no accountant needed (We do have cash and work in the UK).

Regards to all..........

I would put it into Thai stocks- a third portion each into PTTGC, KBANK and ADVANC- i just 4 million baht into these 3 stocks of my and my clients money!