money Where To Invest 200k?

[Immortal666]

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?

[rgcotswold]

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...

[Dr_PepPeR]

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

[Google]

put it in treasury bills or fixed income instruments.

[G.I.]

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

[axlerose100]

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

[Guest lustfortravel]

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.

[kadafy]

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.

[wizard23]

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.

[UncleCrank]

^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

[joss]

50% tresury bills for safety... 20% sari sari store 10% mutual fund lol... 10% bank deposit 10% pang casino yahuuu...

[discoduck34567]

for now i invest mostly in tbills

[zilch45]

mga bossing, pano b mag-invest sa tbills?

[UncleCrank]

@zilch45

if i remember correctly, it's also through banks.. just inquire.

 

 

btw, how much is the interest rate in tbills nowadays?

[lahsproject]

buy stocks!