Saturday, August 11, 2007

Invest my retirement savings

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.
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2 comments:

Anonymous said...

MAKE SURE YOU LEAVE YOUR MINIMUM SUM WITH CPF TO EARN GUARANTEED 4%.
Do as
what MR.Tan advised with the rest of the balance.

August 11, 2007 8:48 PM
Khiat Han Hwee Adrian said...

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.

August 12, 2007 7:03 PM

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