I recently got $1million extra cash and was thinking of placing it into a long term deposit.
However, my country (Singapore) is only paying 2.5% for a 1 yr SGD deposit.
I was exploring the option of splitting up the money into fixed deposits of the 4 major currency (USD, EUR, AUS, NZD) as they are yielding around 4.5 - 8% annually.
I did some computation of the highs and lows of the exchange rates of the currency versus SGD for the year of 2007. So, if the deposits matured end of 2008 and I was to change it based on 2007’s high and lows, the difference was either a loss of 10% of my capital(based on low exchange rate + interest earned) or a gain of 20% (based on high exchange rate + interest earned).
I was wondering whether anyone of you out there is doing something similar or is there a better way to get higher yields through forex (without day trading/swing trading of course).
hi there,
first off, and bare in mind i dont want to be offensive or flame you, BUT if you have 1 million dollars SPARE, why are you asking on theese forums what to do with them??? ( i would alredy be knocking on the door of a major broker/bank, where i would be probably drinking champaggne with the manager-if it was cash!!!).
However, if you intend to invest in currencies, i guess that carry is NOT the way at the moment. maybe later this year, but now…NO!
reasons? well USD is going down the toilet and rates aren’t coming up either, EUR—> will hold rates where they are, if not ecb will be cutting rather than lifting. Inflation will hit hard here in EU. Aud, and NZD , by many analysts have peaked out with interests, so again it is more likely that they will hold or lower rates.
Instead why dont you buy crude oil fut, by what analyists say you if you buy it for 100, and by the end of the year the price is 175 ( wich is unlikely) however if it reaches 150 during the year ( more likely) you will be left over with 1,5 mill. That is sooooo much better than 4-8% in currencies.
in the meantime you can start buying GOLD since it is callin to reach and BEAT the all time high!
But again…don’t listen to us n00bs here, a mill to “throw” away is better at the banks ( so you can sue some 1 at least!!!)
GL m8
forgot to say the only thing i was actually wanting to say.
Give it to me. i accept deposits, cash, real estate, cars, visa, mastercard,…
…there’s soo much room in my pockets, in fact there is exactly room for a million
No offence taken.
I’m sure most would doubt the authenticity of the claim …as most have not seen that much money (Apart from those in the finance industry).
But yes, you are right, I have done investment with 2 private banks and they are managing my account for about 3 mths now. However, I’m still left with $1mil and I would like to do it myself as I do not want to get charged as I am currently paying them 1% mgmt on AUM (Asset Under Management). That’s on-top of the other expenses incurred in buying funds, shares, commodities and what have you.
The reason why I’m doing this is because it’s new money… something I have not had… a windfall …so I did what was advised on the internet by wealth management website… I went to the pte banks. But still, you know… there’s still some perception in me that says bankers will make money out of you irregardless…and it’s better that you not invest everything with them. So, this idea of putting in something that is safe like deposits appeal to me and i’m just seeking some advice or experience from people who have done that… (not with 1mil.but with smaller amount,nevertheless, experience counts).
I find it hard to believe people think HNI can’t be posting on the internet… there are some who just inherit wealth and believe in the finding out all he can, doing his due diligence from different sources but of coz, ultimately ,making his own judgement call.
now it depends where you live…if you are from the us it is time to start buying real estate from ppl that need money ( and i think there are really quite some firms that will sell for low prices given the health of the housing industry). with 1 mill you could buy 3 or 4 appartments.
Rent them out and in 3-4 year when housing will be back on track you will have probably doubled the ammount you have right now+ take in the 10000 that you get from rents.
If you need a “safe” heaven for your million, deposits aren’t the best option. they are still held in a bank, and if a northen rock happens , you can say godbye to the million, and even with a deposit as you said bankers will make money out of you regardless. Just bare in mind that interest deposits aren’t an “investment” right now. there is a grater chance that carry currencies will loose on value than gain, after all we have seen some multiyear/all time highs taken out during the past year, so it is likely that an “adjustment” time is required before we move on, higher. and this time could be ofc less than a year ( that means a looooot of volatility=losses for most of the tradres-even pros) or more likely more than a year.
If you need the money fo a “run away” case, buy GOLD, in bars.
I think someone such as yourself posting on boards like this suffers a bit of backlash from those who would have other than noble intentions with the type of claims you’ve made. Cynical, but all too often true.
This forum is probably not the best place to ask the sort of question you are asking for the simple reason that the folks here are mostly inexperienced in forex and almost exclusively focused on the trading of, not investment in. You would probably be better served to post your inquiry on a site like Trade2Win which has a membership with a much wider array of experience, and not just related to forex. You are more likely to find someone(s) there who has done or explored what you are attempting.
That said, you anticipated holding period for this investment must factor significantly into your plan of action.
Focus, with the best will in the world, babypips is about trading - not investing. It sounds like you want to invest your money. If you’re thinking of trading (and you should treat carry trades as trading but on a longer time frame, so at least your not diving into the unknown), then it’d be the same advice as everyone new goes through - off to babypips school with you. Carry trades - which is what I think you’re alluding to can be just as risky as day trading, depending on how much leverage you choose of course.
