Dear Mr Tan
I have recently retired from work and taken out my money from the CPF.
I have a large sum of money kept in the bank earning a miserable interst rate of 2%. Is is safe for me to invest in a unit trust or investment fund to earn a higher return? What is a good time to invest in the stockmarket after it has corrected?
REPLY
You can read this FAQ.
My preference is:
* invest $200,000 in a life annuity
* invest the balance in a large, well diversified fund
As the global stockmarkets are still in turmoil, it is better to keep your money in the money market fund (to earn 1.5% to 2%). When the stockmarket has corrected to a lower level, you can invest in the combined fund.
You should talk to an insurance adviser.
MAKE SURE YOU LEAVE YOUR MINIMUM SUM WITH CPF TO EARN GUARANTEED 4%.
ReplyDeleteDo as
what MR.Tan advised with the rest of the balance.
It is not easy to time the market and if you are not sure when is it considered as market at a low level, you may invest in a lower risk portfolio. In your case, you can consider 70% Bonds and 30% Equities.
ReplyDelete