Hi Mr Tan
I've enjoyed reading your blog site and those valuable advices your have given to the people.
Recently, my life savings of S$50K in fixed deposit is maturing soon. The interest rate is not as attractive as 6 months ago, if I renew with the current bank or transfer to another bank. Could you kindly advice me how can I make my $$$ work
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My reply:
I am in the same situation as you. I have some money to invest, but find the interest rate on fixed deposit to be unsatisfactory. The stockmarket is too high at this time.
I decided to invest in the money market fund with NTUC Income, through the flexi-cash product. It earned a money market rate, which is about 3% to 3.5% per annum.
You can withdraw your money from the money market fund at any time, without any penalty. This allows you to invest in the stockmarket to earn a higher return, when it corrects down to a lower level.
You can find more details in www.income.coop/faq. You can telephone or visit the business center of NTUC Income to talk to a consultant.
Dear Mr Tan,
ReplyDeleteYou mentioned a large well diversified fund mainly invested in equities. Are you referring to the Income Global Equities or the Growth Fund(combined Funds)?
The upfront fee is still 3.5% but you said do not invest in a fund where the upfront is more than 3%. So far the only company that offers lower up front fees is Dollardex(on line trading)
Thank You
If you get a bonus of 1% from NTUC Income, the upfront fee falls to 2.5%. It is acceptable.
ReplyDeleteThe unit trust promoted by DollarDex has low upfront fee. You should check the annual fee as well.