Immortal666 Posted June 24, 2008 Share Posted June 24, 2008 My mom just sold a piece of our land for 200K and she intends to keep it as money for when she grows older. I told her it wouldn't be wise to have it just sit in a bank earning 1% interest. I was telling her to invest in Mutual Funds but she was thinking of putting the money in a time deposit. I'm not that knowledgeable in Mutual Funds to convince her otherwise. Can you give suggestions on what would be the best way to invest the money and hopefully earn some interest on it? Quote Link to comment
rgcotswold Posted June 24, 2008 Share Posted June 24, 2008 My mom just sold a piece of our land for 200K and she intends to keep it as money for when she grows older. I told her it wouldn't be wise to have it just sit in a bank earning 1% interest. I was telling her to invest in Mutual Funds but she was thinking of putting the money in a time deposit. I'm not that knowledgeable in Mutual Funds to convince her otherwise. Can you give suggestions on what would be the best way to invest the money and hopefully earn some interest on it? WELL ITS ALWAYS NICE TO INVEST IN THOSE TYPE OF FINANCIAL INSTRUMENT... FOR ME THE BEST WAY TO INVEST YOUR MONEY IS TO GET INTO BUSINESS AT LEAST HWAK M KAPALARAN M.... MAYBE A LITTLE FISHPOND OR SOMETHING INTO GROWING OR RAISING FARM ANIMAL... LIKE ORGANIC VEGTABLE OR MAYBE ORGANIC CHICKEN... THERES A BIG DEMAND FOR SUCH PRODUCT... Quote Link to comment
Dr_PepPeR Posted June 24, 2008 Share Posted June 24, 2008 (edited) In cases like that, the safety of the principal is really the prime consideration so I really wouldn't suggest mutual funds or UITFs for now. Try short term special savings account or government securities. Ask your bank for advice. Edited June 24, 2008 by Dr_PepPeR Quote Link to comment
Google Posted June 25, 2008 Share Posted June 25, 2008 put it in treasury bills or fixed income instruments. Quote Link to comment
G.I. Posted June 25, 2008 Share Posted June 25, 2008 it appears that the investment is for long term, so i guess, Balanced UITFs or MF is okay. Mura ngayon buying price. After 2-3 years or after 2010 malaki na return. Try BDO and/or Philequity. Wag lang isa, try splitting the amount 1 Quote Link to comment
axlerose100 Posted June 25, 2008 Share Posted June 25, 2008 (edited) My mom just sold a piece of our land for 200K and she intends to keep it as money for when she grows older. I told her it wouldn't be wise to have it just sit in a bank earning 1% interest. I was telling her to invest in Mutual Funds but she was thinking of putting the money in a time deposit. I'm not that knowledgeable in Mutual Funds to convince her otherwise. Can you give suggestions on what would be the best way to invest the money and hopefully earn some interest on it? My friend you are right. Placing your money in a bank with 1% interest p.a. is never a good investment. I don't even want to look at today's current inflation rates; I don't want to get depressed. If the annual inflation rate today is estimated at 5% (very optimistic) you are actually losing 4% of your money's value every year you earn 1% from the bank. That's IF the interest is tax free, which it isn't. Any interest you earn below the inflation rate will hand you a net loss on the value of your money. If you can get a better rate investing in mutual funds/time deposits, that would be better. Just make sure these mutual funds are affiliated with big, stable banks or financial institutions and more importantly can be trusted. But as Dr_PepPeR said, these present a risk. If they mishandle their investments there is a possibility of you losing all your money. The only advantage of placing you money in a bank is the insurance provided by the PDIC. I don't think the same insurance is provided for by mutual funds/time deposits. I think the best investment would be to buy up as much non-perishable commodities as you can. At the rate oil prices are rising, its possible to get at least 10-12% more for what you bought something a year ago. Edited June 25, 2008 by axlerose100 Quote Link to comment
Guest lustfortravel Posted June 25, 2008 Share Posted June 25, 2008 I agree with Dr. Pepper and Google. In this particular case, your mom cannot afford any "loss" on the principal. She may also need the money for emergencies like hospitalization so it would be advisable to keep it liquid. Your best bet would be fixed-income instruments such as special deposit accounts or treasury bills. Quote Link to comment
kadafy Posted June 25, 2008 Share Posted June 25, 2008 the principal is the main concern. i assume your mom is already in the 40's at least. maigsi na ang "horizon" ika nga... you might want to check special deposit accounts. last time i checked with bpi, it's at 5.++% gross. mga 4% sya nett. better than a regular savings or td. pwede rin yung mga funds na invested sa gov't securities or bonds. there are MF companies that have products that invests purely on bonds. check out sunlife. basta, avoid na siguro yung mga high risk/high stake investments. time is not on your mom's side. baka di nya mabawi. hope that helps. Quote Link to comment
wizard23 Posted June 25, 2008 Share Posted June 25, 2008 diversify. spread your investments. if you would like high risk, stocks is the way to go. if you are ultra-conservative, banks are the way to go. there are a good number of banks that offer good interest rates but it's a 5 year time deposit usually. i sell philamlife's mutual funds. right now, the pricing is at par with 2006 level. this is another option for you to invest if you want to treat your investment medium to long term. hope this helps. Quote Link to comment
UncleCrank Posted July 19, 2008 Share Posted July 19, 2008 ^your into casino so i assume your risk tolerance is high.. here are some high risk investment vehicles that you can try: stocks, forex but for now i suggest iwas muna sa stocks because of the current market condition, unless you know how to short. disclaimer: trade at your own risk Quote Link to comment
joss Posted July 20, 2008 Share Posted July 20, 2008 50% tresury bills for safety... 20% sari sari store 10% mutual fund lol... 10% bank deposit 10% pang casino yahuuu... Quote Link to comment
discoduck34567 Posted July 21, 2008 Share Posted July 21, 2008 for now i invest mostly in tbills Quote Link to comment
zilch45 Posted July 21, 2008 Share Posted July 21, 2008 mga bossing, pano b mag-invest sa tbills? Quote Link to comment
UncleCrank Posted July 21, 2008 Share Posted July 21, 2008 @zilch45if i remember correctly, it's also through banks.. just inquire. btw, how much is the interest rate in tbills nowadays? Quote Link to comment
black cat Posted July 23, 2008 Share Posted July 23, 2008 Government t-bills is the safest. Ang alam ko they are issuing now eh.. try mo mag-ask around. The interest depends on the principal amount and maturity date. Quote Link to comment
justinapay Posted July 23, 2008 Share Posted July 23, 2008 get a franchise of a food business Quote Link to comment
Immortal666 Posted July 24, 2008 Author Share Posted July 24, 2008 Thanks for the reply, people. To provide a bit of closure to the topic I opened, let me tell you how we invested the 200k. We chose the safest route and it was through a 3-month time deposit. After that is over, we'll move the money to another bank who offers a higher TD interest rate. Ganun na lang siguro for now. Quote Link to comment
parbust3r Posted July 24, 2008 Share Posted July 24, 2008 which bank and at what gross interest rate? Quote Link to comment
Immortal666 Posted July 24, 2008 Author Share Posted July 24, 2008 which bank and at what gross interest rate? BDO at 2.25%. However, after the three months is over, we'll move the money to China Bank who has an interest rate at 3.5%. Quote Link to comment
Google Posted July 25, 2008 Share Posted July 25, 2008 My mom just sold a piece of our land for 200K and she intends to keep it as money for when she grows older. I told her it wouldn't be wise to have it just sit in a bank earning 1% interest. I was telling her to invest in Mutual Funds but she was thinking of putting the money in a time deposit. I'm not that knowledgeable in Mutual Funds to convince her otherwise. Can you give suggestions on what would be the best way to invest the money and hopefully earn some interest on it? ipautang mo sa akin, ibabalik ko after one year with 10% interest.pangdadagdag ko lang sa kapital ko. hehehehe. Quote Link to comment
occam Posted July 25, 2008 Share Posted July 25, 2008 BDO at 2.25%. However, after the three months is over, we'll move the money to China Bank who has an interest rate at 3.5%. Why not skip BDO altogether and just go immediately to Chinabank where the rate is higher? 1 Quote Link to comment
UncleCrank Posted July 25, 2008 Share Posted July 25, 2008 Banks like DBP, Metrobank, BDO etc are offering Retail Treasury Bonds. I'm not sure if it's only up until today (July 25) or if it's till the end of July. Minimum of 5,000 pesos. 3year RTB has a gross interest rate of 8.5% while 5year RTB is at 9%. This is a low risk investment since the govt is the one lending your money thru banks. Interest is paid quarterly so it gives you liquidity. Quote Link to comment
joss Posted July 26, 2008 Share Posted July 26, 2008 medyo malaki nga lang sa PNB tresury bills min nila 100k maganda lang dun pag bili mo ng tbills ang babayaran mo ay 100k mo less yung rate.. in other words pag nag mature yung t bills mo 100k parin pero ang ipinasok mo na pera lets say 10% ang rate di 100-10= 90k lang ang kinuha ng bangko sa iyo eh di may 10k ka pa... may pang gastos ka na di ka na mag hihintay ng mahabang panahon para sa interest. 10k pwede mo na i invest yan... dont worry pag nag mature ang tbills mo balik sa iyo ang 100k mo. yan ang kagandahan ng tbills lol ....parang may advantage ang ganito satingin ko,10k pwede na rin pang mutual funds yun .sa 100k mo may 100k ka na tbills at 10k mutual funds parang naging 110k yung 100k mo instantly ... pero sa ngayon mababa pa ang rates at you have to consider yung tax din pala.. nag hihintay nga ako tumaas ng konti sana ang rates. may mas mataas naman ROI na pagkakakitaan, ito naman tbills pang ano lang ito para lang sa mga walang magawa sa pera lol.... Quote Link to comment
Immortal666 Posted July 26, 2008 Author Share Posted July 26, 2008 Why not skip BDO altogether and just go immediately to Chinabank where the rate is higher? The money was credited to our BDO bank account. Tinamad na kami i-withdraw so dun muna kami nag-open ng TD. Quote Link to comment
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