Short Term Investment

[andysgp]

Hi:

I have $50,000 in the bank at the moment. My plan is to purchase a HDB flat 2 years later. Could you offer any better alternatives than depositing the money in FD for 2 years?

Thanks.

[Dennis Ng]

Hi:

I have $50,000 in the bank at the moment. My plan is to purchase a HDB flat 2 years later. Could you offer any better alternatives than depositing the money in FD for 2 years?

Thanks.

2 years is too short a time frame. Since you need the money then, you should not be taking risk with this money. The only investment with Capital Guarantee and good returns I know of is UK Endowment, but min is about 3 years instead.

Most other investments involve risks (ie. might lose your money), which is NOT suitable since you have a specific need for this money in 2 years' time.

[andysgp]

Thanks for the prompt reply, Dennis. What's the returns for UK Endowment for 3 years then?

Thanks.

[Dennis Ng]

Thanks for the prompt reply, Dennis. What's the returns for UK Endowment for 3 years then?

Thanks.

Hi andysgp,
based on historical record, a 3 year UK Endowment annual returns is about 4% to 6%, with Cash Value of policy as Capital Guarantee value.

It is in sterling pounds and thus subjected to Foreign Exchange fluctuations. However, please note than sterling pounds is currently at 30 year low against S$, and might recover in run up to London Olympics in year 2012.

I personally have about S$150,00 invested into UK Endowment as part of my strategy of putting "eggs into different baskets".